4 min read. Last verified 22 June 2026. 2026/27 rules.
The short answer
A Gift Aid donation is grossed up by 25% and the gross amount reduces your adjusted net income, exactly like a relief-at-source pension contribution. An £800 net donation becomes £1,000 gross and takes £1,000 off your ANI.
Key facts
›A net Gift Aid donation is grossed up by 25% for tax purposes.
›The gross amount reduces adjusted net income, the same mechanism as a SIPP contribution.
›An £800 net donation becomes a £1,000 gross reduction to ANI.
›Higher-rate relief above the gross-up is claimed via self-assessment.
Gift Aid is usually framed as a way for charities to claim more. For higher earners it is also a tax-planning tool.
How it reduces your ANI
A net donation is grossed up by 25%, and the gross amount reduces your adjusted net income, exactly like a relief-at-source pension contribution. So an £800 donation becomes £1,000 gross and takes £1,000 off your ANI.
Common questions
How much does a Gift Aid donation reduce my adjusted net income by?
By the grossed-up amount, not the amount you actually paid. A net donation is grossed up by 25%, so £800 given reduces ANI by £1,000.
Do I need to do anything beyond ticking the Gift Aid box?
Record Gift Aid donations on your self-assessment return so HMRC applies the ANI reduction and any higher-rate relief due.
Figures verified against gov.uk and gov.scot on 30 June 2026. Constants version 2026/27.3. 2026/27 tax year. This is a modelling tool for general insight, not financial or tax advice.
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