Giving shares can cost less than giving cash
When a donor gives shares to a charity, there can be a substantial relief on the
income tax liability and in addition an exemption from Capital Gains Tax on any
gains made on the shares. With the higher rate of income tax at 40% and Capital
Gains Tax at 18%, this offers a substantial tax break when making a donation of
shares. As with Payroll Giving, all the tax relief goes to the donor.
Accordingly, it is important to emphasise that it is the donor’s responsibility
to keep adequate records of when shares were purchased and the share price, then
the date of sale and price realised.
Donors should claim their tax relief by completion of the appropriate section of
their tax return. If you are not sent a tax return by HMRC, then you should contact
your tax office.
It should be noted that the transfer and sale of shares under a certain value may
be uneconomical for the charity once brokers fees and administrative costs are taken
An agency named ShareGift does specialise in accepting small holdings of shares
and indeed also helps donors with larger gifts of shares to their nominated charity.
Further information and literature can be obtained from the Diocesan Gift Aid Office (Tel. 01277 265282).