ACCA Taxation F6 Practice Exam 2026 – Complete Study Resource

Under the Gift Aid scheme, basic rate taxpayers can claim tax relief equivalent to 25% of the amount donated to charity. This is because when a charity receives a donation under Gift Aid, they can reclaim the basic rate tax that the donor has already paid on that amount.

For instance, if a basic rate taxpayer donates £100 to a charity under the Gift Aid scheme, the effective value of the donation to the charity becomes £125 because the charity can claim back £25 in tax from HMRC. The taxpayer, in turn, benefits from the relief as they can offset this amount against their tax liability, highlighting the additional value brought by Gift Aid contributions. This is a significant advantage for both the donor and the charity, ultimately encouraging charitable giving while also allowing the donor to optimize their tax position.

This context clarifies why other options are not applicable in this scenario; the percentages provided in those choices either exceed the actual tax relief amount recognized by the scheme or suggest there is no relief available, which contradicts the key benefits of Gift Aid for basic rate taxpayers.