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What are the tax benefits of giving shares?
A donation of HMRC qualifying shares to Christian Aid means that you may be eligible to receive Income Tax relief on the full value of the shares as well as an exemption from Capital Gains Tax (CGT).
For example: If you are an additional rate taxpayer and give a share gift of £10,000 to Christian Aid, we receive the full £10,000 as gifts of shares to charity are exempt from CGT. The total tax saving to you could be = £4,900 (20% Capital Gains Tax* of the £2,000 Gain and 45% Income Tax relief on the total gift).
Therefore, in this example the net cost to you for your £10,000 gift of shares would be £5,100.
*In this example, the original base cost of the shares is £8,000.
If shares you donate have gone down in value, you should be aware that you will not be able to use this loss to offset any other CGT liability you have.
Please bear in mind that the information above is an example of the possibilities available and is in no way a substitute for professional financial advice. To receive advice that is relevant to your individual circumstances please speak with a qualified accountant or financial adviser.
What are the tax benefits of giving shares?
A donation of HMRC qualifying shares to Christian Aid means that you may be eligible to receive Income Tax relief on the full value of the shares as well as an exemption from Capital Gains Tax (CGT).
For example: If you are an additional rate taxpayer and give a share gift of £10,000 to Christian Aid, we receive the full £10,000 as gifts of shares to charity are exempt from CGT. The total tax saving to you could be = £4,900 (20% Capital Gains Tax* of the £2,000 Gain and 45% Income Tax relief on the total gift).
Therefore, in this example the net cost to you for your £10,000 gift of shares would be £5,100.
*In this example, the original base cost of the shares is £8,000.
If shares you donate have gone down in value, you should be aware that you will not be able to use this loss to offset any other CGT liability you have.
Please bear in mind that the information above is an example of the possibilities available and is in no way a substitute for professional financial advice. To receive advice that is relevant to your individual circumstances please speak with a qualified accountant or financial adviser.
How do I claim the tax back?
You can claim your tax relief by completing the appropriate section of your Self Assessment return. If you are not sent a Self Assessment return at the end of the tax year, or if you want to claim relief before the end of the current tax year, you should write to your Tax Office, giving full details of the gift, to claim relief.
Which shares are eligible for tax relief?
For an up to date list of qualifying investments please speak to a qualified accountant or financial adviser, or contact HMRC for more information.
What do I have to do to give them to you?
This will depend on what type of share you have:
- Share certificates If you have paper share certificates, then you will need to send them to us. We will then send you the appropriate transfer form for you to complete and send back. If you have lost the certificates, please see below.
You will need some evidence of the transfer of ownership of the shares to Christian Aid for your tax claim. We will send you a copy of the transfer form and a letter acknowledging your gift, which you will be able to use as evidence. - Shares held electronically (nominee account) Some shares are held electronically rather than in the form of paper share certificates. If your broker is holding your shares in this way (under the Crest system), then they can be transferred directly to Christian Aid. To donate in this way you will need to inform your broker in writing of your wishes and pass on the details of our broker. Please contact us so we can give you this information.
Is it more useful for me to sell the shares and give you the money?
Unfortunately we are unable to give financial advice, and the answer to this will depend on your own individual tax position. We suggest that you talk to a financial adviser to assess your personal circumstances to determine which option is best for you.
With a gift of shares, you get the tax relief. If the shares you give are worth £1,000, we will receive that amount, and you will receive Capital Gains Tax exemption and if applicable Income Tax relief at your highest tax rate. If you sell the shares and you give £1,000 to Christian Aid, through Gift Aid (which requires the completion of a simple form), we can claim back the basic rate tax and your cash gift of £1,000 is worth £1,250 to us. If you are a higher, or additional rate taxpayer, you can also claim back the difference between the basic and higher/additional rate. But if you sold the shares to make a cash donation, you may have to pay Capital Gains Tax on any increase in the market value of these shares. See our Gift Aid page for further information on cash donations (LINK). For more information contact your financial adviser, local tax office or see the HMRC website.
I cannot find my share certificates, what do I do?
Can I Gift Aid shares?
I only have a few shares, can you still accept them?
If you have a small number of shares (valued, say, under £500), ShareGift, the charity share donation scheme can help. It will accept your shares and then pool them with shares given by other people. ShareGift make donations to a wide range of charities – and does support Christian Aid. You can contact ShareGift on 020 7930 3737.
What will Christian Aid do with the shares?
Are there any shares you will not accept?
Christian Aid’s ethical policy stops us from fundraising from organisations whose work, policies or product is detrimental to people in developing countries. If the shares being offered could potentially fall into this category, we would take a pragmatic approach based on benefit verses risk and potential damage to Christian Aid’s reputation and its partners by accepting them.
For more information contact Paul Sandford at psandford@christian-aid.org or call 020 7523 2094.