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

What do you need to do?

You can donate shares directly to the School or, having confirmed the arrangement in advance, sell the shares on our behalf and simply donate the proceeds. You should discuss which option is best for you with your financial adviser or accountant.

If you hold share certificates

Complete a Donation of Share Form and return it to the Development Office at Clayesmore, confirming your wish to make a gift of shares. We will arrange for a Stock Transfer Form to be sent to you which you should complete and return to our brokers – Killik & Co, 46 Grosvenor Street, London, W1K 3HN – marked for the attention of Michael Pate. Please keep a copy of this form for your records.

If your shares are held in a nominee account

Complete this Donation of Share Form and return it to the Development Office at Clayesmore, confirming your wish to make a gift of shares. You should then instruct your broker to contact Michael Pate at Killik & Co, 46 Grosvenor Street, London, W1K 3HN, Clayesmore’s brokers, to transfer your shares. The telephone number is – 020 7337 0400.

When we receive your shares

We will send confirmation of the value of your gift to you; this is the value you should use to claim tax relief on your gift. You may also claim tax relief on any fee your broker charges for the transfer of shares. Corporation Tax Relief corporate donors are able to offset the full value of their gifts and shares against their tax liability through their corporation tax return.

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