Tax efficient charitable giving through share donation

23 April 2024

Clients who would like to give to charity and hold a number of shares which are too small in number to sell, can use the charity ShareGift to facilitate the donation and receive tax advantages as part of the process.

Advice firms can help the individual transfer the share ownership to Sharegift, who will then realise as much value as possible from the shares by aggregating them, selling them and using the proceeds to make donations to a wide range of other registered charities.

Donors can suggest which charities receive the donations and, subject to due diligence, Sharegift will look to make a donation to that charity.

UK taxpayers can claim income tax relief on the value of most listed stocks and securities when donated to a charity. In addition, donating shares charitably gives rise to neither a gain nor a loss for Capital Gains Tax (CGT) purposes. This means that the donor will not be liable for any CGT. However, donors cannot offset a loss against other gains if the shares donated have gone down in value.

David Mcintosh, CEO of ShareGift says although the charity accepts donations of all sizes, the median donation to the charity is around £18.00, with £500 being considered a large donation. “But through advice firms we’ve received donations from individuals of over a million pounds.” The charity also facilitates larger donations from businesses and corporates.

Mcintosh says ShareGift distributes around 10 times a year, and will often round up the donation, using smaller gifts where no specific charity has been suggested to receive the benefit.

Donors remain anonymous, unless they prefer not to be when they can contact their nominated charity direct. But each donor will receive a letter of receipt.

Importantly, McIntosh adds, the central portfolio is maintained by the custodians FIS Platform Securities free of charge and the stockbroking and wealth management firm Killik & Co waive all ShareGift’s commission charges for share dealing, which means that even more money can be given to more charities.

To find out more about ShareGift go to the website or contact David direct on: [email protected]

Professional Paraplanner