Since April 2000 there have been generous tax incentives to give shares to charity.Giving shares is a simple, tax-effective way to support our work and reduce your tax bill as such donations can be exempt from Capital Gains Tax and could also reduce your Income Tax liability.
Income Tax relief
If you donate shares to the British Lung Foundation, you can get income tax relief on the donation. This means that a higher rate taxpayer making gift of £1,000 worth of shares to a registered charity will receive income tax relief of 40 percent of the full value, ie £400. Or, if you pay tax at the standard rate, the relief would be £200. You can claim this on your self-assessment tax form, or by contacting your local Tax Office.
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).
Capital gains tax relief
In addition, you will not have to pay capital gains tax on any increase in the value of shares since you bought them. Which, in theory, could mean an extra 'saving' of up to 40% for a higher rate taxpayer.
For more information please contact HMR&C on 0845 3 02 02 03
How to donate shares to the British Lung Foundation
If you would like to make a gift of shares, please contact the Finance department on 020 7688 5555 and we will send you the relevant forms to transfer your stocks.
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