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Giving or Selling Shares

emptyShare giving is one of the most tax efficient ways to give money to County Durham Foundation.

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Board member Alex Worrall gives County Durham Foundation shares in a goldmine - click to read more.

Charitable gifts of shares are free from capital gains tax and donors can claim income tax relief on the value of the donated shares. This tax relief applies no matter what the total value of the shares.

Who can I talk to about donating shares?
How do I donate shares to County Durham Foundation?
What are the tax benefits?
Read more about gifts of shares on HM Revenue and Customs website

Who can I talk to about giving shares?

You should get advice from your tax advisor before giving shares to ensure that you are giving in the most tax efficient way possible.

For further information you can contact Gillian Stacey, our Chief Executive,via post: County Durham Foundation, Jordan House, Forster Business Centre, Finchale Road, Durham, DH1 5HL. Telephone: 0191 383 0055, Fax 0191 383 2969 or Email gillian@countydurhamfoundation.co.uk

How do I donate shares to County Durham Foundation?

The type of shares that you can give are, broadly speaking, anything with a defined market value. i.e. Shares listed on a London or recognized overseas stock market, unit trusts, OEICs etc.

  1. You must have paid the equivalent amount of income tax or capital gains tax in the year to the amount you will be reclaiming.
  2. If you have, you can claim income tax relief at 40% if you are a higher rate taxpayer or at 22% at the lower rate. You claim this amount in your self-assessment tax return in the year that you donate the shares by deducting the value of the donation from your taxable income. You can arrange for the relief to be received before the year-end by contacting your tax office direct. Your gift of shares will also be exempt from capital gains tax (currently at 40% of the capital gain).
  3. You can either transfer shares direct to our broker or you can sell them for us on our behalf. If you are interested in the latter option, you must write to us first stating your intention to give us shares and ask us how we would like to receive your donation. We will inform you that we wish you to sell the shares on our behalf. If this written process does not take place before you sell the shares then you will not be able to claim tax relief on the gift. Our bank details for the final transfer are as follows:

    4. Natwest plc, 12 Market Place Durham, DH1 3NT

    Account Name: County Durham Foundation
    Account Number: 23670894
    Sort Code: 52-30-44

  4. If you are transferring your shares to us and they are held in a nominee account, your broker would need to speak to our broker, confirm accounts and agree a trade and settlement date to take place. You will need to confirm to us in writing that you are transferring the shares.

    5. Our brokers details are:
    Investment manager contact:

    Anthony Grezo
    UBS Wealth Management (UK) Ltd
    2 St James’ Gate
    Newcastle upon Tyne
    NE4 7JH Tel: 0191 211 1000

    Registered Address
    UBS Wealth Management (UK) Ltd
    1 Curzon Street
    London W1J 5UB

    County Durham Foundation account number: 7906201
    Nominee Account: Productive Nominees Ltd, Participant ID: 407
    County Durham Foundation charity number is 1047625. Our Inland Revenue Charity reference number is XR8306 - you will need to quote this to ensure that the transfer is free from stamp duty.

  5. If the shares are held in paper form you will need to complete a share transfer form (which your broker can supply you with, or Anthony will be happy to fax one to you they are not acceptable when electronically transferred) and return this to the Company Registrar. The Registrar will then issue a new certificate in the name of County Durham Foundation. You will need to keep a copy of the transfer form or letters relating to the gift of shares in order to claim tax relief on it. The date of transfer will be the date that you sign the stock transfer document (although the shares may come out of your name on the company's register at a later date).

  6. Whichever format the transfer takes place, you will need to determine the market value of the shares on the date of transfer.
  7. County Durham Foundation can 'buy' the shares back from you at less than the market rate, in which case the difference between market price and the price at which you sell them to us is considered the value of the gift. We will agree a price for the shares (perhaps your cost price, or another acceptable sum). If we ask you to sell them on our behalf then your broker can send us a cheque (or bank transfer) the amount received by you minus our purchase price.
  8. Whichever method you use for transferal, you will need to confirm to us in writing that you are transferring the shares.
What are the tax benefits?

For basic rate tax payers (22 per cent):

If you donate shares worth £500 to County Durham Foundation, then you will be able to claim income tax relief of £110 (22 per cent of £500). This means the donation has cost you £390, whilst County Durham Foundation has been given shares worth £500. You also will not have to pay any capital gains tax on the disposal of these shares.

For higher rate tax payers (40 per cent):

If you donate shares worth £10,000 to County Durham Foundation, then you will be able to claim income tax relief of £4,000 (40 per cent of £10,000). This means that the donation will cost you £6,000, whilst County Durham Foundation has been given shares worth £10,000. You also will not have to pay any capital gains tax on the disposal of these shares.

 

 

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