Charities in the UK received £1.71bn through gift aid in the last tax year, up 7% on the year before, according to new figures published by HM Revenue and Customs.
HMRC’s statistics, published today, show that overall tax reliefs for charities in the year to April 2025 amounted to £4.75bn, up 5% on the previous year, with business rates accounting for the majority of this (£2.75bn, up 7% from 2023-24).
However, relief of stamp duty land tax for charities was down 18% to £270m in 2024-25.
Aside from the £4.75bn of reliefs to charities, reliefs for donors also increased by 5% to £1.92bn last financial year.
This included an 8% increase in higher rate relief – relief at higher rates of tax on individuals’ gift aided donations – rising to £820m in 2024-25.
HMRC also reported a 2% increase in inheritance tax reliefs for donations – up to £980m last financial year.
More charities receiving gift aid
The number of charities receiving gift aid increased for the second year running, by 2% to 67,320 in 2024-25.
This follows four years of consecutive declines from 73,220 charities in 2018-19 to 64,170 in 2022-23.
In 2024-25, around half the value of gift aid payments went to charities that received less than £1m each, about the same as the previous year.
Richard Bray, chair of the Charity Tax Group, said his organisation was pleased to see the increased financial benefit to charities from gift aid relief on donations.
“However, we note that the value of this relief is almost equal to the additional cost to the charity sector of national insurance following the increase in the autumn budget,” he said.
“We look forward to working with government to find ways to ameliorate the impact of this additional burden which is limiting the ability of charities to carry out their essential work which benefits us all.”
Related articles
