Support people with epilepsy by donating shares directly to Epilepsy Action
Do you have an unwanted shareholding or are you looking for a way to donate while reducing your tax bill? Epilepsy Action can accept share donations directly from our supporters. Although we would be delighted to accept overseas share donations from non-UK residents, please note that the following information is applicable only to UK share donations & related issues.
Making a charitable donation of shares to Epilepsy Action can be a highly tax effective way for you to support people with epilepsy. When a charitable gift of shares is made, this can be done at a significantly lower cost to yourself because of the generous tax relief which is available.
You can claim Income tax relief on gifts (or sales below market value) to charity of:
- Shares or securities which are listed on any stock exchange recognised by HM Revenue & Customs (HMRC).
- Shares or securities dealt in on any market in the UK designated by HMRC.
- Shares in a UK Open-Ended Investment Company (OEIC).
- Units in an Authorised Unit Trust (AUT).
- Holdings in certain foreign collective investment schemes
- Income Tax
When you donate any of the above shares to Epilepsy Action you can get Income Tax relief on the entire donation. Your taxable income is reduced by the value of the donation, so if you are a 40 per cent taxpayer, for instance, and donate £1,000 worth of shares, you will get £400 tax relief. Or, if you pay tax at 20 per cent, the relief would be £200. You can claim this on your self-assessment tax form, or by contacting your local Tax Office. This £1,000 donation would then effectively cost you £600 or £800.
- Capital Gains Tax
Ordinarily, when you sell shares for more than the price you bought them for, this is known as making a capital gain. You can make gains up to an annual exempt limit. The limit for the tax year 2018/19 is £11,700, so any gains up to this amount are exempt from tax. Anything above that will be subject to Capital Gains Tax at either 18 or 28 per cent depending on your existing income level. However, you will not have to pay any Capital Gains Tax on shares which you donate to Epilepsy Action. This exemption may therefore be important to you if you have reached, or are likely to reach, the annual exemption limit.
- You can also get both Income Tax relief and Capital Gains Tax relief when you sell shares to us at below their market value.
How do you donate shares?
- Share certificates
We will provide you with the appropriate ‘Stock Transfer Form’ to complete and sign. Please send all the relevant documentation back to Epilepsy Action and we will start the transfer process. Your donation can then be used to help improve the lives of people with epilepsy.
- Electronic share holdings
If your shares are held in electronic form, please inform us of the stock which you would like to donate, and where this stock is held. We will then inform you of where to instruct your stockbroker to transfer the shares. Again, this process is made very simple for you.
- I only have a few shares?
The administration involved in Epilepsy Action transferring and selling a small holding of shares may outweigh the financial return. For shares worth less than £100, you can donate shares to ShareGift and mention you are a supporter of Epilepsy Action. ShareGift is a charity specialising in accepting smaller numbers of shares and they make donations to charities, based on donor preference.
- Tax Advice
As a charity, we are naturally unable to advise on personal tax issues and recommend that you contact a financial advisor or the HMRC helpline on 0300 200 3300.
A compulsory tax on employment (for example, salary) and investment (for example, interest) income. For the 2014/15 tax year, Income Tax is charged at between 20 per cent and 45 per cent.
Capital Gains Tax
A capital gain is made when an asset is sold or disposed of that has increased in value since it was acquired. For the 2014/2015 tax year, Capital Gains Tax is charged at 28 per cent for higher and additional rate payers and 18 per cent for others.
This is a concession by the government which can be used to reduce a person’s taxable income.
The amount that can be deducted from a person’s annual income to reduce the amount on which tax is paid.
A paper certificate which designates ownership of shares in a company.
Stock Transfer Form
This is the form that the donor or seller of shares signs when transferring a holding to a new owner, who also signs.
Electronic ‘nominee’ share holding
In the stock market, the most common use of nominee accounts is where stock brokers act as nominees for their clients. The shares are registered electronically in the name of the broker, but the client has beneficial ownership of them.