Giving shares is one of the most tax-effective ways you can choose to support Pelican, as you can claim income tax relief and won’t have to pay any capital gains tax on the shares you donate.
If you have received windfall shares and/or have small shareholdings, they can often be uneconomical to sell – but they can be an extremely tax-efficient way to give to Pelican.
If you make a charitable donation in the form of shares, you can claim back income tax based on the market value of the shares at the time of the donation. What’s more, as charitable gifts of shares are exempt from capital gains tax, instead of paying a percentage in tax for any increase in the value of the shares, you can allow the charity to benefit from that extra money instead.
This means that if you are a higher rate (40%) taxpayer you will be able to claim income tax relief equal to 40% of the value of the gift. A higher-rate taxpayer donating £1,000 of shares would save £400 on income tax liability. If you are a highest rate (50%) taxpayer, you will be able to claim income tax relief equal to 50% of the value of the gift.