Gift of Shares
All donations of shares will receive income tax relief of 100% of their market value. This means that if you give shares worth £100,000 to the House you will receive income tax relief based on this in full ie £40,000 at the higher rate of tax. Clearly this is a wonderful tax break, as it goes directly, and in timely manner, to the donor.
The only requirements to make such a saving are that as a donor you must:
- Claim the tax relief yourself in your tax return
- Be liable to pay the amount of tax deducted (ie the gift can not give rise to a tax credit)
- Give the shares intact to Christ Church (ie not sell them first)
- Give listed shares or securities, units in authorised unit trusts, shares in open-ended investment companies, holdings in foreign collective investment schemes or unlisted shares or securities dealt in on a recognised stock exchange, such as the Alternative Investment Market
In addition to the income tax saving, donors making gifts of shares will not attract any capital gains tax liability. All shares donated to charity give rise neither to a gain or loss for capital gains tax purposes. Hence, if a taxpayer makes a gift with £100,000 worth of capital gains (after indexation, taper relief and the annual exemption amount) to charity, there will be no capital gains tax on this gift; a potential saving of £40,000.
Together, these mean that a taxpayer making a gift of £200,000 (with a taxable capital appreciation of £100,000) could pay as much as £120,000 less in tax compared to a non-charitable disposal.
Gifts of Real Property
From April 2002, gifts of property, i.e. land and buildings to a charity have been given relief from income tax in a similar way to gifts of shares. The donor deducts the full market value of the property, less anything received in return, from their income for tax purposes.
Give As You Earn
Under the Give As You Earn payroll giving scheme, employees can authorise their employer to deduct charitable donations from their pay before calculating Pay as You Earn tax. In this way an employee automatically gets tax relief at their top rate of tax. There is no limit to the amount that can be given under this scheme.
If you are considering a gift of shares, property or payroll giving please contact the Development and Alumni Office advice on how to make your gift.