Gifts of Shares

Donations of shares which are listed on a recognised stock exchange, units in authorised unit trusts or shares in OEIC's are eligible for relief of capital gains tax (CGT). In addition, the market value of the shares on the day of transfer can now be offset against your income tax liability in the year than they are donated.

An example:  A donor owns shares valued at £10,000 when donated to Corpus. The donor is charged a broker’s fee of £100 for transfer fee. The donor can then deduct £10,100 from that year’s taxable income. As a higher rate tax payer the donor may be eligible to reclaim 40% tax relief on this amount, thus saving £4,040. Therefore the gift of shares worth £10,000 will cost the higher rate taxpayer £6,060. The basic rate taxpayer is eligible to claim 20% tax relief, therefore their gift of shares worth £10,000 will cost them £8,080. These transactions would not be liable to Capital Gains Tax.

Gifts of Land or Buildings

Individuals who donate land or buildings to charity benefit from income tax relief and exemption from capital gains tax, similarly to gifts of shares. The donor must be able to show that the charity has agreed to accept the gift.

The relief works in the same way as Share Giving. Tax relief is given for the market value of the property as a deduction from the donor's income tax liability for the tax year when the gift is made. The income tax relief is in addition to exemption from Capital Gains Tax. The market value of a property is what it would fetch if sold. The amount that can be deducted is:
•    The market value of the property; plus
•    Any associated costs of transferring the property, such as solicitor's fees; less any proceeds of the sale, or the value of any benefits received in consequence of making the gift.

Donors should claim their tax relief by completing the appropriate section of their tax return. If they are not sent a tax return or if they want to claim relief before the end of the tax year, they should contact their tax office for advice. You should discuss the arrangements carefully with your advisers. Donors should seek tax advice from their financial advisers.
 

For more information on giving gifts of this nature please contact the This e-mail address is being protected from spambots. You need JavaScript enabled to view it or write to:

• Development Office,
  Corpus Christi College,
  Trumpington Street,
  Cambridge, CB2 1RH
  
  Telephone: +44 (0)1223 339731
  Fax: +44 (0)1223 337014

It is advised that you consult your financial adviser, as benefits will depend on your personal situation.