Share your shares

Would you like to save yourself some tax and help Practical Action at the same time? Why not consider donating shares to us? Perhaps you've accumulated some as a windfall? Perhaps you've dabbled on the stock market? No matter how many or how few shares you have, Practical Action can benefit from them as a gift.

By donating your shares to Practical Action, not only will you help in alleviating poverty, but you can also reclaim the tax on your gift. There are two ways to do this depending on whether you want the charity or you to get the most benefit.

For example, say you are a higher rate tax payer and you have £100,000 of shares which would produce a £25,000 net gain to you.

Option 1
You sell the shares and give proceeds to ITDGPractical Action under Gift Aid
sale proceeds	£100,000
less Captial Gains (£25,000 @ 40%)	£10,000
net proceeds	£90,000
Under gift aid, ITDGPractical Action recover tax of £25,384 giving a total of £115,384 to us. You claim marginal tax relief 18% on £115,384, so the net gift has cost you £79,231 (£100,000 less £20,769)
ITDGPractical Action receives	£115,384
cost to you	£79,231

Option 2
Give the shares to ITDGPractical Action who receive £100,000 proceeds
You claim tax relief at the higher rate on £100,000, giving you £40,000 so the gift has cost you £60,000.
ITDGPractical Action receives	£100,000
cost to you	£60,000

This is a brief general outline and your accountant would be able to give you precise details according to your own individual circumstances. Why not see if this could be an option for you to help us? Talk to your accountant about arranging transfer, or e-mail us for further details.