Gifts of Shares

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 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:

Gift of Shares to Charterhouse
Current market value of shares

£10,000

Broker’s fee

£50

Original cost of shares

£4,000

CGT liability

 £Nil

Income Tax Relief (one of):

(£10,050.00 x 45%)
(£10,050.00 x 40%)

£4523
£4,020

If you are interested in making a gift of shares, please do contact Chris Hibbs. 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.