What tax information do I need to know about?
Giving PROPERTY
Your gift will be free of capital gains tax, and you will get income tax relief on the value of your gift, giving rise to a tax refund to you for the year in which the gift is made.
Please call us if you are considering giving property to benefit your favourite good causes for a full discussion.
Giving SHARES
Gains made by you on shares given to the dove trust are exempt from capital gains tax. You must transfer the shares to the trust, and not the proceeds of sale, for this to apply. Almost all shares are eligible for this relief.
This means that you can give shares which have been held for many years, and have large gains, and the proceeds can be distributed to charities of your choice. Those charities do not have to wait until you die to benefit!
In addition, shares given also qualify for income tax relief in the year in which the gift takes place. The market value of the shares at the date of gift is deducted from your income, resulting in a lower tax bill, or a refund at the top rate of tax you pay.
Tax REBATES
All or any part of a tax refund due to you under the UK Self-Assessment tax system can be allocated to a charity of your choice, and paid direct by the Inland Revenue to that charity. You nominate the charity and enter the charity code number on your Tax Return at box 15. The dove trust code number for this purpose is sde123456sa.
When we receive your tax refund, we will contact you to ask you how you would like this to be distributed to the good causes you wish to support.
GIFT AID and INCOME TAX
Gift Aid relief is available to UK residents, and non-residents who are liable to UK tax.
Donations do not qualify for relief if the donor receives a benefit from the donation, unless the benefit is small (broadly 2.5% of the donation up to a maximum of £250).
One Gift Aid declaration covers all donations until the donor cancels.
Donors must pay an equivalent amount of UK income tax or capital gains tax to that recovered by the charity. This can include tax credits on interest or dividends, and tax charged at any rate. If insufficient tax is paid in the tax year (6 April to 5 April following) to cover the amount recovered by the charity, the Inland Revenue has the right to issue an assessment to recover the shortfall of tax due.
The amount of gross donations reduces income for the purposes of calculating age-related personal allowances.
These rules apply only to individuals, and not to companies. For limited companies, please refer to the 'Companies' section of Giving pages.
These rules are correct at the time of publication, and may be subject to change by the Inland Revenue or future Finance Acts. If in doubt, consult the dove trust offices, or your personal tax adviser.
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