Individuals or companies donating shares to charity can benefit from tax relief on two levels. Firstly, the value of the shares donated can be offset against your income tax bill (reducing the cost to you by 22% or 40% depending on whether you are a basic rate or higher rate payer) and secondly, a donation of shares avoids the capital gains tax due upon them. Here is a theoretical example:
Current value of shares to donate: £100,000
Income Tax relief (higher rate): £40,000
Capital Gains Tax avoided: £32,000
Cost to you: £28,000
The transferral of shares is a simple process: it can either be carried out electronically, manually (transferring the certificate) or by the donor acting as an agent for the charity. Please contact the Development Office to discuss this further. It is also important to contact your own financial adviser to discuss exactly what tax benefits you are eligible for.