Higher-rate tax payers

Churches and other charities can only reclaim the basic rate of tax on Gift Aided donations, no matter whether the donor pays basic-rate or higher-rate tax. However, HMRC allows higher-rate tax payers to reclaim the difference between basic and higher-rate tax themselves. HMRC guidance on tax relief for such donors is available on the UK Government's website.

Higher-rate tax payers may, of course, choose to increase their giving upfront to take account of this tax relief or donate the reclaimed amount retrospectively. In the case of the latter, Gift Aid can be reclaimed by the congregation on those additional donations too.