Lincolnshire chartered accountants Nicholsons are advising tax payers to take advantage of the government's Gift Aid system, where donors are invited to tick a box confirming that they are a UK taxpayer, allowing the charity to claim back a 25p tax credit for every £1 donated.

Partner Richard Hallsworth said: "This has provided a welcome boost for many good causes, but there is an additional benefit for higher-rate taxpayers, who can claim higher-rate tax relief (currently 40% minus the basic rate of 20%) on their gifts by entering any donations made over the course of the tax year in the 'gift aid' box on their self-assessment tax return.

"Therefore anyone who is set to be caught by the new 50% tax rate, or the withdrawal of personal allowances from April next year could benefit from holding back any donations, where possible, until the tax can be reclaimed at the increased rate. An additional benefit comes from charities which offer products with Gift Aid in mind, such as the National Trust's gift aid membership scheme - the tax rebate allowed on a family membership at £105 would certainly be worthwhile for anyone who makes regular visits to the organisation's properties".

The tax relief does not just apply to cash donations, and can also be claimed on physical gifts, such as donations of unwanted items such as clothes, DVDs or CDs to a charity shop. If the shop records the gifts in the taxpayer's name, the charity can claim the extra 25% and the donor, if a higher-rate taxpayer, can claim tax relief on the value of the gift, in the same way that they would with a cash donation.