Gift of Shares or Securities

Gifts of shares are exempt from Capital Gains Tax and you can claim a deduction for the gift against your income for tax purposes on their market value.

Income tax relief is available for the total value of the gift, namely the full market value of the shares, plus any incidental costs of making the donation (e.g broker's fees), less any value received from the organisation in return.
Gifts of shares or securities offers a means of benefiting charities in a tax-efficient manner, whilst at the same time rationalising small holdings of shares.
The relief is against your income tax for the year and, additionally, you will not have to pay any Capital Gains Tax on any increase in the value of the shares since you bought them.
The relief is available for shares and securities listed on the UK Stock Market, the Alternative Investment Market, and recognised stock exchanges overseas.
It is also available for units in a UK unit trust, shares in a UK open-ended investment company (OEIC), and some similar foreign investments.

Example:

Gift to quoted shares to English Heritage valued at (and on which taxable capital gain of £500)	£1000
Amount donor can claim (up to 40%) if the donor is paying tax at 40%	£400
If there is a capital gain of £500, the donor can get relief at 40% (ie £200), therefore the total cost to the donor is only	£400
i.e.
Value of gift	£1000
Less income tax relief at 40%	(£400)
Less capital gains relief of 40% on the £500 capital gain	(£200)
Total cost to the donor	£400

There can be additional personal tax benefits if you sell your shares to English Heritage at less than market value. You may wish to consult your accountant for advice with regard to this.
Further details on how the tax relief works are given in the Inland Revenue's leaflet IR 178, available on their website or by calling 0845 9000 404.

If you would like to consider leaving a gift of shares of securities, please do not hesitate to contact the English Heritage Development Office on 0207 973 3538.