5.1.1 Since 6 April 2000 individuals and companies have been able to claim Income or Corporation Tax relief on gifts to charity of certain shares, securities and other investments. The relief was extended from 6 April 2002 to include gifts of land or buildings.. This relief is available in addition to the relief from Capital Gains Tax for gifts to charity from individuals and the relief from Corporation Tax on gains for gifts to charity by companies. (There is a Self Assessment Helpsheet that gives details of the capital gains reliefs for individuals, Helpsheet HS295 Relief for gifts and similar transactions.)
5.1.2 An amendment to the 2004 Finance Bill was tabled on Friday 2 July 2004. The amendment is intended to stop certain tax avoidance schemes that seek to exploit this relief. The schemes in question are highly contrived, using options and non-charitable trusts to obtain substantial tax relief at negligible cost, while giving little benefit to charity. Further details are available in the Inland Revenue News Release of 2 July 2004.
5.1.3 A further amendment was introduced by the Finance Act 2010, effective from 15 December 2009, to block avoidance schemes that exploit the rules for tax relief on gifts of qualifying investments to charities.
Further details are available in the Detailed Guidance Notes for donors.
