15 January 2026
- 47% of higher rate taxpayers unaware they can claim tax relief on donations, up from 39% in 2024
- Almost a third (30%) of those who claim the tax back, do it so they can donate extra money to charity.
- A quarter (24%) who claimed it back were acting on professional financial advice
As the Self Assessment deadline approaches, new research by the Charities Aid Foundation (CAF) has found that 47% of higher and additional rate taxpayers are unaware they can claim back money on the taxes they have paid on their charitable donations.
CAF, which provides giving services to individuals and donors, has found this lack of awareness has increased from 39% at the end of 2024.
Around 12 million people, including those who are self-employed or earn over £100,000, are due to complete a Self Assessment tax return before the deadline on 31 January 2026. As well as claiming Gift Aid for the charity to receive, higher and additional rate taxpayers who donated to charity in the previous year can claim for personal tax relief in their tax return. The difference between their tax rate and the basic rate of tax on the value of their donations can either be claimed as personal tax relief or donated to charity.
For example: If a higher rate taxpayer donates £100 to charity, the charity claims Gift Aid to effectively make the donation worth £125. The donor pays 40% tax so they can personally claim back £25.00 or donate this to charity.
Yet almost three quarters of higher and additional rate taxpayers do not claim money back on their taxes for their charitable giving (71%).
Higher and additional rate taxpayers are more likely to have donated to charity in the past 12 months than the UK average (65% donated vs 55% average) and their average donation is nearly twice as much. Despite not knowing about the tax relief available, more than two-thirds (69%) of higher and additional rate taxpayers always claim Gift Aid when making donations, ensuring the charity can claim an additional 25% of the value of the donation. This compares to 60% of basic rate taxpayers.
25% of higher and additional rate taxpayers are aware of the tax relief on offer and utilise it. Almost a third (30%) of those in this group who claim the tax back, do it so they can donate extra money to charity. Nearly a quarter (24%) claim it back because their accountant or financial adviser recommended it, emphasising the importance of advisers in raising awareness of the tax incentives available to charitable donors.
Almost a quarter (24%) of higher rate and additional taxpayers are aware of the incentives available but don’t claim anything back. The most common reason given is that they haven't kept a record of their donations (33%).
Mark Greer, Managing Director at the Charities Aid Foundation (CAF) said: "As the number of people donating falls, and charities are under increasing strain, it’s important that more people understand the tax incentives available when giving to charity. With more people expected to enter higher tax brackets, knowing this relief is on offer to them could encourage higher rate taxpayers to consider donating more, unlocking additional funds for these crucial services. It’s great that advisers are raising the topic with their clients and we encourage more to do the same.”
Tips to maximise your charitable giving:
Declare your donation so the charity can claim Gift Aid
Any donor giving money to a charity can effectively increase their donation by signing a Gift Aid declaration if they pay enough income tax. The charity can then reclaim the basic rate tax already paid on that donation. Higher and additional rate taxpayers who fill in a Self Assessment form can also claim back the difference between their tax rate and the basic rate of tax on the value of their donations as personal tax relief.
Claim Gift Aid sooner
Self Assessment tax returns normally only include items from the previous tax year. But for Gift Aid, you can also claim tax relief on donations made in the current tax year (up to the date the return is sent), either to get the tax relief sooner or if you will not be paying higher rate tax in the current year but have paid it in the previous year.
Claim tax relief for previous years
If you forget to claim tax relief, or were unaware that you could, then you have four years to submit a claim for tax ‘overpayment relief’ to HMRC. That’s four years after the end of the tax year to which your claim relates.
Declare if you gave shares to charity
This is a relatively little-known way to give to charity but it is also very tax efficient. You can give shares directly to charity as long as they are listed on a recognised stock exchange. Donors will get full tax relief on any capital gains tax. You can also claim income tax relief on the fair market value of shares.
Let charities know if your circumstances change
The amount of tax you pay needs to be at least equal to the value of Gift Aid the charity will claim on your donations. If circumstances change and you no longer pay enough tax, it is important to tell all the charities you support. If you don’t tell them and they continue claiming Gift Aid, you may need to pay any difference back to HMRC.
Open a Gift Aid Charity Account
A Charity Account allows you to donate flexibly when you can, or add funds each month through setting up a Direct Debit. If your donation is eligible, the provider then claims 25% Gift Aid on your donation which will be added into your account. All the funds will be held in your Charity Account until you're ready to give and can be used to support the causes you care about for one-off donations, appeals, sponsorship, monthly standing orders and more. All your donations are then recorded in one place. 25,000 people use CAF’s Gift Aid Charity Account to donate to charity every year.
