CG66648 - Gifts: Income Tax Relief for Gifts of Shares to Charities

ICTA88/S587B introduced a new Income Tax relief for gifts and other non-arm's length disposals of certain assets to charity with effect from 6 April 2000 for individuals and 1 April 2000 for companies. A detailed explanation with worked examples is provided on the HMRC website at www.hmrc.gov.uk/charities/giving-land.htm.

There is nothing to prevent a gift from qualifying simultaneously for both the Capital Gains Tax relief and the Income Tax relief, provided the conditions for both reliefs are fulfilled.

The Income Tax relief is significantly narrower. In particular:

• Only certain assets qualify, shares or securities listed or dealt in on a recognised stock exchange, units in authorised unit trusts and certain offshore funds, and shares in open ended investment companies.
• The recipient must be either a charity or within the very short list in ICTA88/S507. The other bodies listed in Schedule 3 IHTA 1984, see CG66641, do not qualify.