Donating shares directly to a UK charity is one of the most tax-efficient charitable giving strategies. You avoid Capital Gains Tax on any gain and receive an income tax deduction at your marginal rate on the full market value. Use this calculator to quantify your potential savings compared to selling the shares and donating cash.
Share Donation Tax Relief Calculator
Frequently Asked Questions
What tax relief do I get for donating shares to charity?
When you donate qualifying shares to a UK charity you receive two tax reliefs: (1) you pay no Capital Gains Tax on any gain in the shares, and (2) you can deduct the full market value of the shares from your taxable income, saving income tax at your marginal rate.
What is a qualifying share donation?
Qualifying investments include shares and securities listed on a recognised stock exchange, units in a unit trust, interests in an authorised OEIC, and certain foreign equivalents. Shares in unlisted companies generally do not qualify for this relief.
Is it better to donate shares or sell them and donate the cash?
Usually donating the shares directly is more tax-efficient. If you sell first you pay CGT on the gain, then donate cash (which gets Gift Aid but no CGT relief). Donating shares avoids CGT entirely and still gives you the income tax deduction on the full market value.
How do I claim the income tax relief for share donations?
You claim the relief on your Self Assessment tax return. Enter the market value of the shares donated in the \u2018Gifts of shares, securities and property\u2019 section. You can deduct this from your total income for the tax year of the donation.
Does the charity pay CGT on shares I donate?
No. Charities are exempt from Capital Gains Tax, so when they sell the donated shares they keep the full proceeds. This makes share donations extremely valuable — the full market value reaches the charity and you receive full tax relief.