Why Give Shares?
There are 12 million people in the UK who own shares
By giving shares to The CAIRN Trust you will make a substantial tax saving, not only on capital gains tax but on income tax as well. For The CAIRN Trust, gifts of shares keep our administration costs low, enabling us to spend more money on providing an education and family based care to children in Nepal.
Income Tax Relief
The relief from income tax is available for the full market value of the shares on the date of disposal i.e. 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 a £20,000 worth of shares to a registered charity will receive income tax relief of 40% of the full value, i.e. £8,000!
In order to make these savings you need to:
- 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 order to qualify for the relief, the shares or securities must be one of the following:
- listed or dealt on a recognised stock exchange
- units in authorised unit trusts
- shares in a UK open-ended investment company
- 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 when given to The CAIRN Trust the gift is worth more than if you had sold shares yourself. This can vary and depends on how much capital gains tax you would have paid. As every donor's situation will be different, we recommend that you seek advice from a tax adviser/accountant to determine your own situation.
Our Recommended Way of Receiving Your Shares:
1) Complete a Crest Transfer form for each share holding and return it to us together with the appropriate share certificate(s).
2) Electronically transfer any shares held by brokers under the Crest system.
3) Present the shares as a gift to The CAIRN Trust over a number of years. This ensures that you have enough taxable income in the year that you make the donation to offset against the market value of your gift.
4) Post the share certificate in the name of The CAIRN Trust and attach a letter stating when we can sell the shares. We will hold onto the shares until the date you specify.
For further information or assistance, please contact our Finance Team on +44 (0)1425 481504 or by email: firstname.lastname@example.org