than 20%) After 2011 The cost to the donor of the donation Since 6 April 2008 (higher rate taxpayers only) This means that for a net donation of £75 from Mr Burns, the charity would receive a benefit of £125. If Mr Burns paid income tax at the additional rate (45%), the cost to him would be further reduced. He would be entitled to reclaim the remaining 25% of income tax which he paid on the gross value of the gift (the 45% income tax which he paid, less the 20% claimed by the charity). This would amount to a repayment of £31.25 on the £100 donation (£125 × (45% - 20%)). This would mean that for a net donation of £68.75 from Mr Burns, the charity would receive a benefit of £125. The cost of the donation to a basic rate taxpayer is unaffected, as a basic rate taxpayer cannot reclaim any additional tax. Revenue to HMRC Not all monies paid to HMRC during this transaction are refunded. Any National Insurance contributions paid by the employer and employee are not refunded. Although all income tax paid by the higher-rate taxpayer is refunded, the way this is implemented has the effect of making the cost of the donation smaller than the higher-rate taxpayer may have intended as the following example illustrates: The giver has only really donated £75 of net income, despite having made a payment of £100. If the charity does not reclaim the tax this money stays with The Treasury. If the giver does not submit a properly completed self-assessment, the refund to the giver stays with The Treasury. Gift Aid Small Donations Scheme The Gift Aid Small Donations Scheme (GASDS) allows charities to claim 25% on cash donations of £30 or less and contactless card donations of £30 or less collected on or after 6 April 2019. From 6 April 2016, a charity can claim up to £2,000 in a tax year or £1,250 for earlier years. Gift Aid It Campaign To promote the Gift Aid incentive (amongst other activities), the UK Government created "The Giving Campaign" in June 2001. The Giving Campaign was in charge of the "Gift Aid" brand, a brand which is still used to this day despite closing in 2004. Notes External links Tax relief when you donate & Claiming Gift Aid as a charity, HMRC legislation.gov.uk (mostly repealed in 2007, remainder repealed