Share Giving

SharesWhat is it?

When donors give or sell shares to a charity they can get substantial relief on their Income Tax bill, as well as exemption from Capital Gains Tax (CGT) on any gains they may have made on the shares.  With the higher rate of Income Tax at 40% and Capital Gains Tax at 18% from 6th April 2008, this can amount to a substantial tax break. As with Payroll Giving, all the tax relief goes to the donor.

 

What are the benefits?

Share Giving is one of the most exciting ways that charities can access money from new donors, or increase donations from existing donors. Some donors will be unaware that the tax relief can make a significant difference to their tax bill, but it can be a very attractive donation option so it is one that is well worth promoting. Each year, around £100 million of shares are given to charity and the average value of each gift works out at approximately £7,000, making Share Giving a great way to attract high-level donations.

How the tax relief works

While fundraisers do not need to be experts on shares or tax relief, it is a good idea for you to understand the basics. There are two types of tax relief available to donors who give shares: Income Tax relief on the value of the shares and exemption from Capital Gains Tax.

It is the donor’s responsibility to keep adequate records to enable them to claim their tax relief and to work out how much relief they are entitled to. Donors should claim their tax relief by completing the appropriate section of their tax return. If they are not sent a tax return or if they want to claim relief before the end of the tax year, they should contact their tax advisor.

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