The Chancellor announced changes in the March 2000 budget that mean by making a gift of shares to the Fund it is possible to make a substantial tax saving not only on Capital Gains Tax but also on Income Tax as well.
Those who wish to donate via this method should, in the first instance, please contact Regimental Headquarters' Project Officer for more details - the Contact page on this website is an ideal place to start.
Income Tax Relief
The relief from Income Tax is available for the full market value of the shares on the date of disposal. In other words, you will not pay income tax on the equivalent amount of your annual income in the tax year the gift is made. This means that a higher rate taxpayer, making a gift of £10,000 worth of shares to the Fund will receive income tax relief of 40% of the full value i.e. £4000
In order to qualify for the relief, the shares or securities must either be: Listed or dealt on a recognised stock exchange in the UK or elsewhere; or UK Authorised Unit trust; or UK open-ended investment company shares; or Certain foreign collective investment scheme holdings.
Capital Gains Tax relief
In addition to Income Tax relief, there is also full relief from Capital Gains Tax, which means that in the hands of the Regimental Charity the gift is worth more than if you had sold the shares yourself. Your capital gains will be exempt from Capital Gains Tax and the Regimental Charity will pay no tax on the sale of the shares.
Gifts of shares are best transferred to the Fund by instructing your stockbroker. You will need to arrange copies of the share transfer documents for any gift of shares to support your claim for tax relief.
Please consult your financial and/or legal adviser before gifting shares or any other assets to the Regiment.