Giving Shares to Pembroke

Making a donation via shares is one of the most tax-efficient ways you can give as you won’t have to pay any capital gains tax on the shares you donate and you can claim income tax relief too.

  • Higher rate (40%) taxpayers are able to claim income tax relief equal to 40% of the value of the gift.
  • Highest rate (45%) taxpayers can claim income tax relief equal to 45% of the value of the gift.
Value of shares
Amount of income tax relief you can claim
Cost to you
CGT relief you can claim (beyond annual exempt amount)
Value to Pembroke
Basic rate taxpayer (20%)
£1,000
£200
£800
10% of capital gain
£1,000
Higher rate taxpayer (40%)
£1,000
£400
£600
20% of capital gain
£1,000
Additional rate taxpayer (45%) £1,000 £450 £550 20% of capital gain £1,000

Shares listed or dealt on a recognised stock exchange (UK or foreign), units in authorised unit trusts (and similar foreign collective investments) and shares in a UK open-ended investment company (OEIC) or holdings in certain foreign collective investment schemes are eligible. Donors of shares can claim the tax relief by completing the appropriate section of their self-assessment tax return and keeping a copy of the transfer form or letters relating to the donation.

For a higher-rate taxpayer whose CGT annual exemption has already been used up for the year, the incentives are enormous, particularly if the value of those shares is substantially greater than at acquisition.

For example, donating shares originally purchased for £10,000 which are now worth £25,000 will bring £25,000 to the College, but you will receive income tax relief of up to 45% x £25,000 (£11,250). In addition, by donating them to Pembroke College rather than selling them to fund your donation, you will also save up to 20% of £15,000 gain in value (£3,000). Please note, however, our strong recommendation is that you consult your financial adviser as the benefits to you will depend upon the capital growth of the shares you intend to donate and your own tax situation.

HMRC guidance can be viewed here.

How to donate your shares

  1. If you intend to give shares you estimate are worth less than £5,000 the College requests that you sell the shares and donate the proceeds to Pembroke. To make sure that you receive the CGT relief the College recommends that you follow advice given by HMRC.
  2. If you intend to give shares you estimate are more than £5,000 please complete and sign a Share giving form (editable PDF) and the Crest Transfer Form (for each share certificate).

For information on how to transfer shares to the College, please contact the Development Office on 01223 339079 or by email.