Each year £100 million of shares are given to charity. When you decide to give or sell shares to the University you could be entitled to substantial relief on your Income Tax bill, as well as any exemptions from Capital Gains Tax (CGT).
Depending on the type of higher rate tax payer you are (40% or 45%) and Capital Gains Tax currently at 18% at the time of writing, you may be entitled to a substantial tax break with all the tax relief going to you as the donor.
Shares that qualify as a donation are broadly those that are publicly quoted such as:
- Shares and securities dealt in or listed on the UK Stock Exchange, including the Alternative Investment Market Shares and securities dealt in or listed on any recognised overseas stock exchange.*
- Units in a UK authorised unit trust (AUT)
- Shares in a UK open-ended investment company (OEIC)
- Holdings in certain foreign collective investment schemes (broadly, schemes established outside the UK that are equivalent to unit trusts and OEICs)
*Companies may not give a gift of its own shares.
Companies get this relief in addition to any exemption from Corporate Tax on any capital gains on gifts to charity of shares, securities and other assets.
Gifts of shares for those who are self-employed or in partnerships the deduction is calculated in the same way as for individuals.
The example below shows how a deduction for gifts of shares is calculated. A larger version of this example can be found here.
Using the Example below, tax payers at the higher rate of 40% for donations of this kind would see a potential reduction of £19,820 (£49,550.00 @ 40%) in your Income Tax bill. And tax payers at the highest rate of £45% for donations of this kind would see a potential reduction of £22,297.50 (£49,550.00 @ 45%) in your Income Tax bill.
If you would like to make a gift of shares to the University we suggest you speak to your professional finance advisor for advice on gifts of this kind. For any further information please contact the Office of Development and Alumni Relations or phone on +44 (0)23 8059 9079.
Giving to the University in this way benefits both our students and our donors.