Gift of Shares

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Gift of shares

Did you know that donating shares is one of the most tax-efficient ways to give to charity.

Individuals can obtain a double form of tax relief by donating gifts of shares and securities to Clayesmore. The value of the gift can be offset against any income tax liability and in addition, the gift would be exempt from any liability for Capital Gains Tax.

For a higher-rate taxpayer at 40% who donates £10,000 worth of shares, this will mean a reduction of £4,000 in his Income Tax liability, as well as avoiding any Capital Gains Tax liability. The reduction is even greater for top-rate taxpayers at 45%.

A further benefit to the donor is that the tax deduction will be based on the value of the shares at the date of gift, rather than the original cost. This is likely to be higher: eg. a higher rate donor who donates shares valued at £10,000 (with a cost of £3,000) receives income tax relief of £4,000, £1,000 more than original cost.

Donation of Shares	Donor	Clayesmore
Gift of Shares	-£10,000	+£10,000
Income Tax Relief 40%	+£4,000
CGT saved (assume 18% of £10,000)	+£1,800
COST/BENEFIT	£4,200	£10,000