Giving shares and securities is highly tax efficient for the donor who can achieve large tax savings, not only on capital gains tax but on income tax as well.
All donations of shares to a registered charity now receive income tax relief of 100% of their market value. This means that if you give shares worth to the Mill Hill School Foundation, you will receive income tax relief on this in full. i.e. on a gift of shares worth £10,000, the tax relief is £4,000 at the higher rate of tax. This relief can apply whether it is an individual or a company disposing of the shares.
The donor can deduct the market value of the shares or securities on the date of disposal plus any incidental costs of disposing of the shares (broker's fee etc) less any consideration given in return for disposing of the shares and the value of any other benefits received by the donor, or a person connected with the donor, in consequence of disposing of the shares. Donors will claim the tax relief, at their top rate of tax, on their Self Assessment or Corporation Tax return.
The only requirements to make such a saving are that donors must:
In addition to income tax saving, donors making gifts of shares to the Mill Hill School Foundation will not attract any capital gains liability. If a tax payer makes a gift with £10,000 worth of capital gains (after indexation, taper relief and the annual exempt amount) to charity, there will be no capital gains tax on this gift, a potential saving of £4,000.
Together, these mean that a tax-payer making a gift of £200,000 (with a capital appreciation of £100,000) could pay as much as £120,000 less in tax compared with a non-charitable disposal.
The Foundation and generations of Millhillians have also benefited from generous gifts of land and property.