Income Tax Act 2007 section 426

Election by donor: gift treated as made in previous tax year

Section 426 allows an individual who makes a Gift Aid donation to a charity to elect that the donation be treated as if it were made in the previous tax year, subject to certain conditions and limits.

• A donor may elect to carry back a qualifying Gift Aid donation to the previous tax year ("Year P"), provided their tax liability for Year P is sufficient to cover the grossed-up total of all gifts attributed to that year.
• The "increased total of gifts" aggregates the grossed-up amount of the gift being carried back, any other gifts already made or carried back into Year P, and any gifts included in the same election — all grossed up as if made in Year P.
• The election must be made no later than the date the individual files their self-assessment return for Year P, and in any event by the normal self-assessment filing deadline for Year P.
• The election only affects the donor's tax position — the charity is treated as receiving the donation in the actual year of payment and claims any income tax repayment for that year, not Year P.

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