Donating shares and other investments can be a very effective way to help a charity, and also has considerable tax benefits for the donor. In April 2000 a new tax relief was introduced to encourage individuals and companies to give certain shares and securities to charity. The relief is available for securities listed on the UK Stock Market, the AIM and recognised stock exchanges overseas. It is also available for UK Unit Trust units and some foreign investments. An individual can claim tax relief equal to the market value of the shares on the day the gift is made, together with any associated costs such as brokers' fees. The relief is against income tax in that year. Additionally, donors do not have to pay capital gains tax on any increase in the value of the shares since they bought them. However, any loss in value cannot be used to offset other capital gains tax liability. If you would like to discuss this further, please contact: The Administrator |