Donation of Shares

Legislation covering the donation of shares and other securities has recently changed in favour of charitable donors, making this one of the most efficient ways of making a contribution to The Leys.

Donated shares are not liable for Capital Gains Tax and, in addition, a donor can claim the market value of donated shares against their income tax liabilities. A donation of shares originally purchased for £5,000, which have increased in value since purchase to £12,500, will bring £12,500 to the School, but donors will receive income tax relief of up to 50% of the total value of their donation (£6,250 in this example). By transferring ownership of these shares to the School (rather than selling the shares and making a cash donation from the proceeds) the donor can save a further 18% (Basic Rate) in Capital Gains Tax relief (18% of the £7,500 CGT liability in this case is £1,350). The total cost of a £12,500 donation in this example would thus be £6,150.

NB: The Leys recommends that donors considering making a gift of shares or other securities obtain appropriate financial advice. The availability of tax reliefs (as in the above example) varies according to capital appreciation and personal tax status.