The gift of stocks and shares
As well as donating gifts of money, individuals can also help CHSW by gifting stocks and shares. This can provide us with a significant source of income and can also be a tax-effective way for the donor to give.
All shares that are transferrable can be donated, but only publicly quoted shares qualify for tax relief for the donor. Publicly quoted shares include shares listed on the London Stock Exchange or Alternative Investment Market Shares (AIM). For a full list of qualifying stock exchanges, please visit the HMRC website.
Donating shares can be extremely tax efficient as there is no capital gain or loss on donating to a charity plus you can claim income tax relief on the value of the shares.
In order to qualify for the tax relief, the shares or securities must be:
- listed or dealt on a recognised UK or foreign stock exchange
- units in authorised unit trusts
- shares in a UK open-ended investment company
- holdings in certain foreign collective investment schemes
For more information on tax relief for gifts of shares to charity and what records you need to keep please see the HMRC guidance notes
Alternatively, do you hold small quantities of shares that you don’t know what to do with? Or do you have shares that are uneconomic to sell?
If the answer is yes, then you may wish to consider donating them to ShareGift – an independent UK registered charity (No. 1052686) which specialises in releasing the money locked up in small shareholdings. ShareGift works by collecting together small lots of shares until there are enough to sell and then donating the resulting proceeds to a wide range of charities based on suggestions from donors and supporters – therefore you would need to nominate Children’s Hospice South West. To date ShareGift has donated over £125million to over 2,500 charities and has already made grants of over £45,000 to Children’s Hospice South West.
For more information about ShareGift: www.sharegift.org