Give Shares

You can make a substantial tax saving when you donate shares.

Income Tax Relief

By giving shares to Giveall it is possible to make a substantial tax saving, not only on capital gains tax but on income tax as well.  

The relief from income tax is available for the full market value of the shares on the date of disposal. In other words, you will not pay income tax on the equivalent amount of your annual income in the tax year that the gift is made. This means that a higher rate taxpayer making gift of £10,000 worth of shares to a registered charity will receive income tax relief of 40 per cent of the full value, i.e. £4,000. In order to make these savings all you need to do is:

  • give the shares to a registered charity
  • claim the tax relief on your tax return
  • have paid the amount of tax deducted by the end of the tax year in which the gift is given, (in other words the gift cannot give rise to a tax credit).

In order to qualify for the relief, the shares or securities must be listed or dealt on a recognised stock exchange, units in authorised unit trusts, shares in a UK open-ended investment company or holdings in certain foreign collective investment schemes.

Capital gains tax relief

In addition to income tax relief there is also full relief from capital gains tax, which means that in the hands of Giveall the gift is worth more than if you had sold shares yourself. The extent of the difference depends on how much capital gains tax you would have paid: there are some simplified examples below, but every donor's situation may be different and we advise consultation with a tax adviser/accountant to determine your own situation.

The practicalities

Gifts of shares can be transferred to Giveall either by completing a Crest Transfer form for each share holding and returning it to us together with the appropriate share certificate(s) or electronically if your shares are held by brokers under the Crest system.

The effect of disposal on share value

If you as a donor, who is involved in a listed company, are concerned about the effect that an immediate sale of a significant number of your shares by Giveall would have on the share value.

We have two ways of dealing with this problem:

  1. The first way is for you to gift the shares to us in a controlled manner over a number of years. This may be advisable for personal tax reasons as well, because you need to ensure that you have enough taxable income in the year that you make the donation to offset against the market value of your gift.
  2. The second way is for you to send us the share certificate in the name of Giveall and attach a letter with conditions as to when we can sell the shares. We will then simply hold onto them until the date you specify.

Fundraising Regulator

At Giveall we believe that you should receive the best advice and guidance available, which can be found at the Fundraising Regulator's website here.

Please NOTE that details of the Regulator's advice and guidance is accessible and the particular Standard is set out as follows: -

The guidance MUST highlight the following considerations for fundraisers in how they publicise their appeal to prospective donors through their fundraising page on the site:
a) who is organising the appeal;
b) whether the money raised is for a specific purpose or for the recipient to use as they see fit. Where money is raised for a charity for a specific purpose, fundraisers MUST contact the charity to ensure they are aware and happy to receive the funds for this stated purpose. See also Code rule 5.2e on money given for a restricted purpose;
c) where applicable, what the target of the appeal will be - this might be a time target or a financial target;
d) whether the fundraiser is raising money on behalf of or for a registered charity and, where applicable, the name of the charity;
e) how donations can be made, including, where relevant, alternative ways of donating to the appeal and ways to maximise donations via Gift Aid;
f) what deductions will be made for expenses; and
g) what the fundraiser will do with the money if:
• they do not raise enough to meet their stated target;
• they raise an amount in excess of their stated target; or
• the original purpose for which they are seeking donations becomes invalid for any reason.

Click here to review advice and guidance now!