Donate shares

Making a charitable gift of shares can be a highly tax effective way of donating money to the Soko Fund. When you make a charitable gift of shares it is possible to do this at a substantially lower cost to yourself because of the generous tax relief that is available.

Charitable gifts of shares are free from capital gains tax and since April 2000 individuals can get income tax relief, at their highest rate, for the full market value of shares on the date of transfer to the Soko Fund. This means that you will not pay tax on the equivalent amount of your income in the year that you make the gift and you can obtain the tax relief on your self assessment tax return.

In order to qualify for the tax relief, the shares or securities must be; listed or dealt on a recognized UK or foreign stock exchange, units in authorised unit trusts, shares in a UK open-ended investment company or holdings in certain foreign collective investment schemes.

Some simple examples of how the income tax relief works are shown below:

Basic rate tax payer (22%)

• If you donate shares worth £500 to the Soko Fund, then you will be able to claim income tax relief of £110 (22% of £500).
• This means the donation has cost you £390, whilst the Soko Fund has benefited from shares worth £500
• You also will not have to pay any capital gains tax on the disposal of these shares.

Higher rate tax payer (40%)

• If you donate shares worth £1000 to the Soko Fund, then you will be able to claim income tax relief of £400 (40% of £1000).
• This means that the donation has cost you only £600, whilst the Soko Fund has benefited from shares worth £1000.
• You also will not have to pay any capital gains tax on the disposal of these shares.

These examples are for illustrative purposes only. The tax benefits you may be entitled to will depend on your personal circumstances.

To donate some shares to the Soko Fund please follow these simple steps.

·         Obtain a stock transfer form from the Registrar who acts for the company in which you have shares. The name of the Registrar will usually be shown at the bottom of your share certificate. 2. On the stock transfer form, in the box entitled ‘Full name and postal address of the person to whom the security is transferred’, please write: The Soko Fund, 4 Harrison Place 1F1, EDINBURGH EH11 1SF

·         Complete, sign and date the form as appropriate.

·         Send the completed form, together with the share certificate to:

The Soko Fund (FAO James Clunie)
4 Harrison Place, 1F1
Edinburgh, EH11 1SF
Scotland
United Kingdom

We strongly advise you to keep a copy of the stock transfer form as evidence of your gift.

The Fund’s Financial Adviser, James Clunie, will be very happy to receive inquiries and give advice and help. He may be contacted through admin@sokofund.org