Share Giving is one of the many ways to help our work with poor families in rural Africa, and may have tax benefits for you too.
There are many reasons why giving shares might appeal to you. You might hold windfall shares as a result of a privatisation or demutualisation that are effectively gathering dust, making little difference to you, but they could make a big difference to Self Help Africa.
Or you may own small parcels of shares, perhaps as a result of an inheritance, that you regard as a bit of a nuisance as they generate more paperwork than income. These could be turned into something of real value to others by donating these shares to Self Help Africa.
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What are the possible tax benefits for me? |
If you give shares to Self Help Africa you can claim back tax relief in full against the value of those shares. So, a gift of shares worth £1,000 will only cost a higher rate taxpayer £600, or £780 for lower rate taxpayers, and no capital gains tax will apply. You can claim this on your self- assessment tax form, or by contacting your local Tax Office. |
Normally, if you sell shares for more than what they were valued at when you acquired them, this is known as making a Capital Gain. You can make Gains up to an annual limit (the allowance for the tax year 2007/8 is £9,200) without having to pay tax on this money, but anything above that will be subjected to Capital Gains Tax (40%).
However, you will not have to pay any Capital Gains Tax on shares which you donate to Self Help Africa. This exemption may therefore be important to you if you have already reached, or are likely to reach, the annual limit.
This is the general situation, but Self Help Africa is not registered to give financial advice. So if you do want advice on your specific tax circumstances, you will need to contact a financial advisor or HMRC (formerly the Inland Revenue).
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