Donate shares — the double tax-saving way to give
Donating shares is one of the UK's most tax-efficient ways to give — you claim Income Tax relief on their full value and pay no Capital Gains Tax. More good done, less tax paid.
Is donating shares tax-efficient?
In the UK, donating shares to charity is one of the most tax-efficient ways to give. When you gift qualifying shares, you can claim Income Tax relief on their full value and pay no Capital Gains Tax on any gain — a double tax saving that cash donations do not offer.
When you sell shares that have grown in value, you may owe Capital Gains Tax on the profit. But if you give those shares directly to charity instead, you pay no Capital Gains Tax at all — and you can also deduct their full market value from your taxable income, giving Income Tax relief at your marginal rate.
This double saving makes share giving especially powerful for donors holding investments that have appreciated. Qualifying investments include shares listed on a recognised stock exchange, authorised unit trusts and OEICs.
World Aid Network is a UK Charitable Incorporated Organisation with charity registration in progress. Share giving will be available once registration is complete. Tax treatment depends on your circumstances — for larger gifts, take professional advice.
The double tax saving on share gifts
Income Tax relief plus no Capital Gains Tax
Income Tax
Deduct the full market value of the shares from your taxable income
0% CGT
Pay no Capital Gains Tax on the gain you would owe if you sold
Qualifying
Listed shares, unit trusts and OEICs typically qualify for relief
Direct
Transfer shares to the charity rather than selling them first
Frequently asked questions
Is donating shares to charity tax-efficient?
Yes — in the UK, giving shares to charity is one of the most tax-efficient ways to give. When you donate qualifying shares, you can claim Income Tax relief on their full value, and you also pay no Capital Gains Tax on any gain — a double tax saving that giving cash does not offer.
Which shares qualify for tax relief?
Income Tax relief on share gifts applies to 'qualifying investments', which include shares listed on a recognised stock exchange (in the UK or overseas), units in authorised unit trusts, open-ended investment company (OEIC) shares, and some other investments. Your accountant or the charity can confirm whether a particular holding qualifies.
How much tax could I save by donating shares?
You can deduct the full market value of the shares (on the day of the gift) from your taxable income, giving Income Tax relief at your marginal rate, and you avoid any Capital Gains Tax that would have been due if you had sold them. For larger or highly-appreciated holdings, this can make share giving substantially more efficient than donating cash.
How do I donate shares to charity?
You transfer the shares directly to the charity (rather than selling them first), and the charity provides documentation confirming the gift, which you use to claim Income Tax relief through your Self Assessment tax return. It is sensible to speak to the charity and, for larger gifts, your accountant before transferring.
Can I donate shares to World Aid Network?
World Aid Network is a UK Charitable Incorporated Organisation with charity registration in progress. Share giving and the associated tax reliefs apply to recognised charities, so this will be available once registration is complete. You can register your interest now.
Give more by giving shares
If you hold shares that have grown in value, donating them can do more good — and save you more tax — than selling them and giving cash.
Tax treatment depends on individual circumstances; for larger gifts, speak to your accountant.