By gifting shares or securities to Durham School, you can make substantial savings in both capital gains tax and income tax, as donations of shares receive income tax relief of 100% of their market value.
Donating Shares to Durham School
Tax relief is available to UK taxpayers who donate shares and securities listed on the UK Stock Market, the Alternative Investment Market, and recognised stock exchanges overseas. It is also available for units in a UK unit trust, shares in a UK open-ended investment company (OEIC), and some similar foreign investments. Full details are available from the Inland Revenue on 0845 302 0203, or see leaflet IR178 - Giving shares and securities to charity, or visit the Direct Gov website here.
Unlisted and some overseas shares, however, are not eligible for tax relief and may also be difficult for Durham School to sell. In such cases, it may be more efficient for you to sell the shares yourself and donate the proceeds to Durham School using the Gift Aid scheme (a system of tax-efficient giving under which we can claim back from the government the basic-rate income tax paid by you, thereby effectively increasing the value of the gift).
In such cases, we recommend that you seek advice from an independent financial advisor.
How are the shares held?
Your shares are probably held in a nominee account (that is to say proof of ownership is in electronic form) in which case they can be transferred directly to the School’s own account. Please contact us for our broker's details. Alternatively, you can ask your broker to issue a share certificate on paper. The broker may charge a small fee for this service, however if this is the case you should be able to obtain tax relief on this as well as on the value of the shares.
Depending on how you wish to proceed, the process is as follows:
Handling the gift yourself
Contact your broker or the company's registrar (their details can be found on your share certificate, dividend vouchers, the company's annual report, or their website) who will provide a Transfer Deed for you to complete and return to them.
It is important that you keep a copy of this form. It is your evidence to the Inland Revenue concerning the details and date of the gift.
The company registrar will then issue a new certificate in the name of Durham School. If you send this to us, we can pass it on to our brokers who will sell the shares on our behalf.
Letting Durham School handle the gift
Send us your share certificate with a letter of instruction agreeing to the disposal of the shares, and we will send you a Transfer Deed, which you will simply be asked to sign and return to us (remembering to keep a copy for your own records).
We can then forward the certificate and completed Transfer Deed to our brokers with instructions to sell the shares and pass on the proceeds to the School.
Once the shares have been sold, we will contact you to let you know the final value of your gift.