Do you have any windfall share certificates gathering dust in a drawer? Have you considered donating these to a worthwhile cause?
- You benefit from the tax incentives and Brainwave benefits from the shares.
- You can offset the full value of the gifts of shares against your income tax liability for the year. For example if you give a charity £1,000 worth of shares and you are a higher rate taxpayer, you will pay £400 less income tax that year.
- Additionally, you will not have to pay any Capital Gains Tax on any increase in the value of the shares since you bought them.
- If you hold a small number of shares they could be generating more paperwork than income.
- There are variations on giving the full value of the shares and it is possible, for instance, to give just the capital gain element.
It’s a very simple process:-
- Find the share certificate or dividend voucher and look for the address of the Registrar of the Company.
- Contact the Registrar and ask for a Share Transfer form.
- Sign the form – putting the shares in the name of The Brainwave Centre Ltd.
- Keep evidence of the gift and the date it was made.
- Claim the appropriate tax relief.
What will we do with the shares?
We may either sell the shares or keep them as an investment.
Further sources of information
To find out more about giving shares or other tax efficient ways of donating, contact or phone Richard Clarke on firstname.lastname@example.org or 07889 408141.
The Inland Revenue booklet ‘Giving shares and securities to charity’ IR178 provides more details on how the tax relief works and gives some useful examples.