Gifting Stocks and Shares

Making a gift of shares to charity is one of the most tax efficient ways you have of supporting your favourite charitable causes; tax relief can make a significant difference to your tax bill.  As Loretto is a registered charity, should you donate shares to the school you can get income tax relief from that donation.  

The largest impact will be for those who pay the higher tax rate as it is the donor, not the charity who will reap large tax savings - both on Income Tax and Capital Gains Tax (CGT).  For example, if you donate £1,000 worth of shares, and you are a higher-rate tax payer, you will receive income tax relief of 100% of the shares’ full market value (as at the date of the gift) i.e. you will get £400 tax relief.  In addition your gift of shares will not attract any capital gains liability resulting in further significant savings.

The only requirements to make such a saving you must:

  • Note that shares and securities accepted are those that are listed on the UK stock market, the Alternative Investment Market and any recognised stock exchanges overseas

  • Claim the tax relief yourself in your personal tax return

  • Pay the amount of tax deducted (i.e. the gift cannot give rise to a tax credit)

  • Give the shares intact to Loretto School (i.e. not sell them first)

You are advised to seek advice from your own professional tax adviser/accountant.

If you are interested in making a gift of shares to Loretto please contact:

Dr Graham Hawley, Headmaster – 0131 653 4441

E-mail headmaster@loretto.com

When you are ready to proceed you will be asked to tell us the name and amount of the stock you intend to gift and whether or not it is certificated or held with a broker.  Please also give us the contact details of anyone acting on your behalf.  We will then instruct our Foundation’s investment managers to liaise with your agent to conclude the donation.