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Giving guide to charity tax relief

The Giving Campaign, a charity established to encourage a culture of charitable giving in the UK, has published a free consumer guide to share giving and tax relief.

The guide explains how people who are holding small amounts of shares or anyone who finds that the cost of selling their shares would be greater than their value can donate them to charity.

Since April 2000, a change in regulations means that donors can claim tax relief equal to the market value of the shares on the day of donation as well as on associated costs such as brokers&#39 fees.

Relief is claimed against the investor&#39s capital gains tax liability. For example, a higher-rate taxpayer who donates £1,000 worth of shares to charity would pay £400 less income tax for the year.

Tax relief is available for shares and securities listed on the UK stockmarket, Aim and recognised stock exchanges overseas as well as units in a UK unit trust, Oeics and similar foreign investments.

Interested investors should contact their favoured charity and find out whether it has a system in place to cater for these types of transaction. If they do not have a suitable system, organisations such as Sharegift or the Charities Aid Foundation can help.

The Giving Campaign guide also explains how to go about claiming tax relief and includes some case studies which outline the different ways that investors can go about share giving.

Press and information officer Lucinda Gould says: “If an investor has had their fingers burnt in the recent downturn, they maybe sitting on shares that are virtually worthless to them but could be of great value to a charity, with the added benefit of providing substantial personal tax relief – a win-win scenario.”

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