Giving Shares to AFREKID

Giving shares to AFREKID

What are the possible tax benefits for me if I donate shares to AFREKID?

Income Tax

If you donate shares to AFREKID, you can get income tax relief on the donation. If you are a higher-rate taxpayer, for instance, and donate £1,000 worth of shares, you will get £400 tax relief. Or, if you pay tax at the standard rate, the relief would be £220. You can claim this on your self- assessment tax form, or by contacting your local Tax Office.

Capital Gains Tax

Normally, if you sell shares for more than what they were valued at when you acquired them, this is known as making a Capital Gain. You can make Gains up to an annual limit (the allowance for the tax year 2007/8 is £9,200) without having to pay tax on this money, but anything above that will be subjected to Capital Gains Tax (40%).

However, you will not have to pay any Capital Gains Tax on shares which you donate to AFREKID. This exemption may therefore be important to you if you have already reached, or are likely to reach, the annual limit.

This is the general situation. However, as AFREKID is not registered to give financial advice, if you do want advice on your specific tax circumstances, you will need to contact a financial advisor or HMRC (formerly the Inland Revenue).

Learn more

Download our handy guide, Giving Shares to AFREKID, or contact us by email at info@afrekid.org and we will be happy to guide you through the process.