Giving shares can be a highly efficient way for you to support our work, because of the generous tax relief.
Tax benefits of donating shares to Barnardo’s
- a gift of shares is free from capital gains tax
- you can claim income tax relief, at your highest rate, for the full market value of the shares you donate
This means you will not pay tax on the equivalent amount of your income in the year that you donate shares.
You can also claim the tax relief on your self assessment tax return.
Basic rate taxpayer (20 per cent)
If you donate shares worth £500 to Barnardo’s, you can claim income tax relief of £100 (20 per cent of £500).
This means the donation has cost you £400, while the shares are worth £500 to Barnardo’s.
You do not have to pay any capital gains tax on your donation.
Higher rate taxpayer (40 per cent)
If you donate shares worth £500 to Barnardo’s, you can claim income tax relief of £200 (40 per cent of £500).
This means the donation has cost you £300, while the shares are worth £500 to Barnardo’s.
You do not have to pay any capital gains tax on your donation.
To qualify for the tax relief, the shares must be:
- listed or dealt on a recognised 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
The examples given above are for illustrative purposes only. The tax benefits 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 to donate shares to Barnardo’s
Follow these simple steps.
1. Get a stock transfer form from the registrar who acts for the company you have shares in. The name of the registrar will usually be shown at the bottom of your share certificate. If you prefer, we can send you a stock transfer form – please fill out our contact form.
2. On the stock transfer form, in the box entitled ‘Full name and postal address of the person to whom the security is transferred’, write:
Barnardo’s
Tanners Lane
Barkingside
Ilford
Essex IG6 1QG
3. Complete, sign and date the form as appropriate.
4. Send the completed form, together with the share certificate, to:
Suman Mitra
Barnardo’s
Tanners Lane
Barkingside
Ilford
Essex IG6 1QG
We strongly recommend that you keep a copy of the stock transfer form as evidence of your gift.
If you need any more information, please get in touch.