For many UK taxpayers, giving shares to a charity is the most tax-effective way of making a gift.
When making a gift of shares listed on any recognised stock market in the UK or overseas, the donor will not only avoid any Capital Gains Tax liability but they can also offset the full value of the shares against their Income Tax liability. The same principles can be applied to gifts of land, buildings and certain other assets such as an Authorised Unit Trust (AUT) and Open-Ended Investment Company (OEIC). Unless otherwise stipulated, our policy is to dispose of shares on receipt and convert them to cash.
An example of a gift of shares to Charterhouse is shown below:
| Current market value of shares |
£10,000 |
|
Broker’s fee |
£50 |
|
Original cost of shares |
£4,000 |
|
CGT liability |
£Nil |
|
Potential CGT Saving (a + b – c = £6,050 x 28%) |
£1,694 |
|
Income Tax Relief (one of):
(£10,050.00 x 50%)
(£10,050.00 x 40%) |
£5,025
£4,020 |
If you are interested in making a gift of shares, please do contact the
Development Office. Given that individual circumstances vary so much from person to person, we recommend that in addition to talking to us you also seek the guidance of your accountant or financial advisor.