Mrs Smith owns 5,000 shares in XYZ plc which are valued at £2.00 each when she gives them to Abertay. She is charged a broker's fee of £50.00 for handling the transfer.
Mrs Smith has £10,000 (the value of the shares), plus £50 (the broker's fee), for a total of £10,050.
If Mrs Smith is a higher rate taxpayer, she will be eligible to claim 40% tax relief on the above amount, saving her £4,020. Thus a gift of shares worth £10,000 will cost higher rate taxpaying Mrs Smith £5,980. The transaction would not be liable to any Capital Gains Tax.
If Mrs Smith is a basic rate taxpayer, she will be eligible to claim 20% tax relief on the above amount, saving her £2,010. Thus a gift of shares worth £10,000 will cost basic-rate taxpaying Mrs Smith £7,990.
There is no minimum or maximum number of value of shares that can be donated. Donors can claim the tax relief on their self-assessment tax returns or by contacting their local tax offices.
