Maybe you’ve been given some shares you’re not sure what to do with or you’re looking for a tax effective way to make a donation? If so donating shares to the Noah’s Ark Children’s Hospital Charity is great way to support the Children’s Hospital for Wales whilst making a contribution which will cost you between 20% and 50% less than a cash donation.
How does the tax relief work?
There are two types of tax relief that are potentially available when you give shares: Income Tax relief on the value of the shares and exemption from Capital Gains Tax.
Income Tax relief will be given on the market value of the shares on the date of transfer to the Noah’s Ark Children’s Hospital Charity which means that a deduction of the equivalent amount will be made from your income tax liability for the tax year in which you gift is made.
- If you pay income tax at 20% and donate shares worth £500 you will be able to claim income tax relief of £100. This means that your £500 donation will have cost £400.
- If you pay income tax at 40% and donate shares worth £500 you will be able to claim income tax relief of £200. This means that your £500 donation will have cost £300.
- If you pay income tax at 50% and donate shares worth £500 you will be able to claim income tax relief of £250. This means that your £500 donation will have cost £250.
Additionally, you may be exempt from Capital Gains Tax on the increase on the value of the shares that you would have had to pay if you had simply sold them.
The above are simple examples. The tax benefits you might be entitled to will depend on a number of influencing factors and tax liabilities. You should consider seeking professional financial advice before donating shares in order to ensure that you receive the correct tax benefits from the gift you donate to us.
How can I donate my shares?
If you would like to donate shares to the Noah’s Ark Children’s Hospital Charity, please follow the simple steps below.
To transfer the shares in paper form (certificates), the process is as follows:
1) Obtain a stock transfer form from the Registrar who acts for the company in which you have shares.
2) Fill out and sign the form. Our details are as follows:
The Noah’s Ark Children’s Hospital Charity
Cardiff Royal infirmary
3) Return the completed form to the Registrar of Shares with original Share Certificate.
4) The Noah’s Ark Children’s Hospital Charity will receive a new Share Certificate in our name.
Please make sure you keep a dated copy of the transfer form in order to establish the value of the shares when they were transferred, so you can claim the tax relief.
Can any shares be donated to a charity?
All shares that are transferrable can be donated, but only publicly quoted shares qualify for tax relief. Examples of publicly quoted shares include shares listed on the London Stock Exchange or Alternative Investment Market Shares (AIM)..
How can I claim the tax relief?
You should claim the tax relief by completing the appropriate section of your self assessment tax return. It is your responsibility to claim the tax relief and to keep a copy of the transfer form or letters relating to the donation in order to make the claim.