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  • Calculating Gift Aid deductions to Adjust Net Income

    I understand that it I if I make a donation to charity using Gift Aid I can deduct that as part of calculating my adjusted net income. This calculation is also 'grossed up' to account for the 20% basic rate already applied so the value is increased by 25%. Separately, I am aware that charitable organisations can claim Gift Aid on the full value of the cost of admission into somewhere as long as the purchaser is willing to make an additional voluntary Gift Aid donation with it of at least 10%, the "10% rule". As an individual, if I payed an £11 admission with gift aid to somewhere (£10 + £1 donation), what would be the correct amount to take off my adjusted net income? Is it: £1.25 - Just the grossed up donation portion? £12.50 - The whole value grossed up, equivalent to what the charity can claim.