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Giving shares to charity

Making a charitable gift of shares can be a highly tax effective way of donating money to Barnardo’s. When you make a charitable gift of shares it is possible to do this at a substantially lower cost to yourself because of the generous tax relief that is available.

What are the tax benefits?

Charitable gifts of shares are free from capital gains tax and since April 2000 individuals can get income tax relief, at their highest rate, for the full market value of shares on the date of transfer to Barnardo’s. This means that you will not pay tax on the equivalent amount of your income in the year that you make the gift and you can obtain the tax relief on your self assessment tax return.

In order to qualify for the tax relief, the shares or securities must be; listed or dealt on a recognized UK or foreign stock exchange, units in authorised unit trusts, shares in a UK open-ended investment company or holdings in certain foreign collective investment schemes.

Some simple examples of how the income tax relief works are shown below:

Basic rate tax payer (20%)

  • If you donate shares worth £500 to Barnardo’s, then you will be able to claim income tax relief of £100 (20% of £500).
  • This means the donation has cost you £390, whilst Barnardo’s has benefited from shares worth £500
  • You also will not have to pay any capital gains tax on the disposal of these shares.

Higher rate tax payer (40%)

  • If you donate shares worth £10,000 to Barnardo’s, then you will be able to claim income tax relief of £4,000 (40% of £10,000).
  • This means that the donation has cost you only £6,000, whilst Barnardo’s has benefited from shares worth £10,000.
  • You also will not have to pay any capital gains tax on the disposal of these shares.

The examples given above are for illustrative purposes only. The tax benefits you may be entitled to will depend on your personal circumstances. You should consider taking professional advice to ensure that your gift to Barnardo’s is structured in the most efficient manner.

How can I donate shares to Barnardo’s?

If you would like to donate some shares to Barnardo’s then please follow the simple steps below.

1. Obtain a stock transfer form from the Registrar who acts for the company in which you have shares. The name of the Registrar will usually be shown at the bottom of your share certificate. If you prefer we will be happy to send you a stock transfer form - just contact Riyad Islam at riyad.islam@barnardos.org.uk.

2. On the stock transfer form, in the box entitled ‘Full name and postal address of the person to whom the security is transferred’, please write:

Barnardo’s
Tanners Lane
Barkingside
Ilford
Essex IG6 1QG

3. Complete, sign and date the form as appropriate.

4. Please send the completed form, together with the share certificate to:

Riyad Islam
Barnardo’s
Tanners Lane
Barkingside
Ilford
Essex IG6 1QG

5. We strongly advise you to keep a copy of the stock transfer form as evidence of your gift.

For more information or to donate some shares please contact riyad.islam@barnardos.org.uk


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Barnardo’s adheres to the Fundraising Promise and Fundraising Standards Board Guidelines.