Chapter 5 - Giving land, buildings, shares and securities to charity

5.1 Introduction

5.1.1 Since 6 April 2000, individuals have been able to get income tax relief on gifts to charity of certain shares, securities and other investments. The relief has been extended from 6 April 2002 to include gifts of land or buildings. Since 1 April 2000,companies can get corporation tax relief for gifts to charity for the same types of investment mentioned above. Also from 1 April 2002 companies can take advantage of the relief available for the gifts of land or buildings. Companies can get these reliefs in addition to relief from corporation tax on capital gains on gifts to charity of shares, securities and other assets. You can get this income tax relief, in addition to the capital gains tax relief on gifts of assets to charity. (See our Self Assessment Helpsheet IR295 '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.