HMRC's guidance has been updated following tax rate changes announced in the 2008 Budget and the introduction of new HMRC Repayment Claim forms.

The basic rate tax which can be claimed on Gift Aid donations made by individuals in part or all of a tax year can be calculated by using the following fraction:

The basic rate for the year multiplied by the amount of the Gift Aid donation all divided by 100 less the basic rate. So, for example, where the basic rate in force for a tax year is 20 per cent, the fraction will be 20 over 80. On a Gift Aid donation of £10, the tax reclaimable would be £2.50 (£10 multiplied by 20 over 80).

HMRC Charities can only repay UK tax. Foreign tax can only be repaid by the Revenue department of the country in question.

For further information see: http://www.hmrc.gov.uk/charities/guidance-notes/chapter6/parta.htm

In addition, the updated form for Charities to register with HMRC to receive Self Assessment Donations, Form SA Donate, is now available from the HMRC website.