Donate with Shares
This can be the most tax efficient method of giving to a charity. Take the following situation: you own 1,000 shares in ABC Corp which you bought at a total cost of £1,000. The shares have appreciated in value to £10,000 and you have already used up your £7,700 Capital Gains Tax allowance for the year. Simply transfer the shares to SHINE and not only will you not have to pay tax on the £9,000 capital gain but you can also deduct the total value of the shares (at the date of transfer) from your gross income for the year.
In the example above the net cost of this £10,000 donation to a higher rate taxpayer is only £2,400. This calculation is made by adding the saving of £3,600 potential capital gains tax to the £4,000 income tax saved by deducting the market value of the shares (£10,000) from your gross income and subtracting this sum of £7,600 again from the market value of the shares.
To be able to effect such a transaction any donor will have to instruct his/her stockbroker to transfer the shares to a SHINE brokerage account.
For information regarding transferral of shares, please ring the SHINE office on 020 8393 1880.
