Gifts of Shares

(this fact sheet was updated in 2000. Please do visit the inland revenue website for any updates since this period).

Summary

1. From April 2000 a new tax relief was introduced to encourage individuals and companies to give certain shares and securities to charity.

Individuals: Individuals can claim a deduction for the gift against their income for income tax purposes.

Companies: Companies can claim a deduction for the gift for corporation tax purposes.

N.B. This is in addition to the exemption form capital gains tax and corporation tax on chargeable gains which was available for gifts of investments to charity.
N.B. As no tax is deducted from the gift, charities do not need to reclaim any tax from the Inland Revenue in connection with the gift.

2. How the charity can realise the value of the gift.

The charity can sell the shares but there will be a commission charge for selling shares and the proceeds are not within Gift Aid.

Information for the Donor

The donor can get information from IR leaflet 178 and is available on the IR website at www.inlandrevenue.gov.uk

Where does the relief on the gift come from?

The relief is available when individuals/companies give, or sell at less than the market value, any qualifying investment to a charity. Please contact the inland revenue for further details or visit their website.

(see inland revenue website for specific examples on capital gains tax advantages).

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