Tax relief for charities and donors increased by £430m to £4.09bn in 2012/13, provisional figures from HM Revenue & Customs show.
The figures show that reliefs totalled £3bn to charities and £1.09bn to donors, which includes £510m from inheritance tax and £40m in payroll giving.
The figures show that although the total amount donated that was eligible for Gift Aid was up to £4.13bn, from £3.97bn in 2011/12, Gift Aid repayments fell to £1.04bn, from £1.06bn in the previous year.
In its analysis of the data, HMRC puts the decrease down to the continual fall in Gift Aid Transitional Relief repayment claims, which ran for three years and applied to all donations between 2008 and 2011. Transitional Relief was brought in to help charities adjust to the reduction in the basic rate of income tax in 2008.
Payroll-giving figures were up on the previous year with donations to charities from salaries up 5 per cent to £124m, and the number of payroll-giving donors up by 2 per cent to 750,000, HMRC estimates show.
Peter O’Hara, managing director of Workplace Giving UK, a professional fundraising organisation that promotes payroll giving, welcomed the figures but pointed out they did not include employer matching, which was worth £8.5m last year.