Tax relief is available to UK taxpayers who donate 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. Full details are available from the Inland Revenue on 0845 302 0203, or see leaflet IR178 - Giving shares and securities to charity, or visit the Direct Gov website.
Unlisted and some overseas shares, however, are not eligible for tax relief and may also be difficult for Peterhouse to sell. In such cases, it may be more efficient for you to sell the shares yourself and donate the proceeds to Peterhouse using the Gift Aid scheme (a system of tax-efficient giving under which we can claim back from the government the basic-rate income tax paid by you, thereby effectively increasing the value of the gift). In such cases, we recommend that you seek advice from an independent financial advisor.
How are the shares held?
Your shares are probably held in a nominee account (that is to say proof of ownership is in electronic form) in which case they can be transferred directly to the College’s own account. Please contact us for our broker's details. Alternatively, you can ask your broker to issue a share certificate on paper. The broker may charge a small fee for this service, however if this is the case you should be able to obtain tax relief on this as well as on the value of the shares.
Depending on how you wish to proceed, the process is as follows:
Handling the gift yourself
Contact your broker or the company's registrar (their details can be found on your share certificate, dividend vouchers, the company's annual report, or their website) who will provide a Transfer Deed for you to complete and return to them.
It is important that you keep a copy of this form. It is your evidence to the Inland Revenue concerning the details and date of the gift.
The company registrar will then issue a new certificate in the name of Peterhouse. If you send this to us, we can pass it on to our brokers who will sell the shares on our behalf.
Letting Peterhouse handle the gift
Send us your share certificate with a letter of instruction agreeing to the disposal of the shares, and we will send you a Transfer Deed, which you will simply be asked to sign and return to us (remembering to keep a copy for your own records).
We can then forward the certificate and completed Transfer Deed to our brokers with instructions to sell the shares and pass on the proceeds to the College.
Once the shares have been sold, we will contact you to let you know the final value of your gift.
Frequently Asked Questions on Share Giving
You can claim tax relief in any of the following ways:
- Completing the appropriate section of your Self Assessment tax return
- Requesting that your PAYE code is amended for the current tax year
- Requesting that your Self Assessment Payments on Account are reduced
If you are not sent a Self Assessment tax return at the end of the tax year, or if you want to claim relief before the end of the current tax year, you should write to your Tax Office, giving full details of your share gift, in order to claim the relief.
Please note, if you intend to claim tax relief on a gift of shares, it is very important to remember that it is your responsibility to retain evidence of the details of your share gift and the date it was made.
You may also wish to donate back to Peterhouse the tax relief on your gift of shares. This can be done very simply under a new scheme that allows you to donate to charity, via your Self Assessment tax return, any tax repayment due to you that year.
For further information on charitable gifts of shares and associated tax relief, please contact the Inland Revenue on 0845 302 0203 or visit Direct Gov UK (see leaflet IR178 - Giving shares and securities to charity).
To speak to someone about making a gift of shares to Peterhouse, please call the Development Office on 01223 765187.
Please remember that the College is not in a position to offer financial advice or opinions, and seeks simply to inform, with no commitment or responsibility. If you require specialist assistance, you are strongly recommended to consult an independent financial advisor.
Non-UK taxpayers are not eligible for tax relief from the Inland Revenue on the value of any charitable gift of shares. However, you may still wish to make a gift of shares to Peterhouse, which we can then sell to generate funds. Alternatively, you may prefer to sell the shares yourself and make a cash donation to the College (unfortunately such a gift would not be eligible for Gift Aid for non-UK taxpayers).
No. When it comes to gifts of shares, the Government incentive is tax relief for the donor, rather than for the charity. However, this does not mean that charities are losing out, as in practice donors may feel in a position to be more generous or give more frequently that they would or could otherwise. In order to add Gift Aid to your donation, you would need to sell the shares yourself and donate the cash proceeds to the College with the necessary paperwork so that we could reclaim the tax on your gift, however this would make you ineligible for both income tax and capital gains tax relief on the sale of the shares.
