Donate shares or assets
As a result of changes in UK tax laws, tax relief is especially generous for gifts of shares to charities.
Donations from the proceeds of the sale of shares to Somerville College are exempt from capital gains tax. In addition, a donor is able to reduce their taxable income by the market value of the shares at the time of the gift. For donors who pay tax at the higher rate, this is a particularly appealing way to give.
Gifts eligible for this preferred tax treatment include any of the following:
- Shares and securities listed on a recognised stock exchange in the UK or elsewhere
- Units or authorised unit trusts (AUTs)
- Shares in an open-ended investment company (OEIC)
- Certain foreign collective investment scheme holdings (foreign equivalents of AUTs or OEICs).
Please also note that you are not liable to capital gains tax when you make a gift of assets such as land to Somerville, even if the asset is worth more than when you acquired it.
How do I make a gift of shares to Somerville?
You can donate shares to Somerville by opting to sell the shares on the College’s behalf and giving the College the proceeds. In order to do this you will need a written instruction from Somerville to sell shares on its behalf, so that you retain the tax advantages. Alternatively, you may donate shares directly to Somerville.
You must keep the exchange of letters together with the sale note as evidence that you made the gift of the investment to Somerville and that the College then asked you to dispose of the investments on its behalf.
For further information please refer to the HM Revenue and Customs website.
If you wish to make a gift of shares to Somerville, please contact the Development Office in the first instance.