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Giving shares to charity - what if they're online?

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The client's shares are in an online account, and she wants to give some to charity. If she sells and then immediately gives the proceeds to the charity, is that enough to claim the no gain / no loss treatment?

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RLI
By lionofludesch
06th Nov 2019 17:55

I vote no.

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By Accountant A
06th Nov 2019 18:28

I also vote no but I would be very surprised if the online custodian (or whatever they are called) wasn't able to arrange something. Or try the company's registrar.

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RLI
By lionofludesch
06th Nov 2019 18:44

Are you wanting the charity to have the shares or the proceeds ?

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By David Heaton
06th Nov 2019 19:14

No, because the gift is cash, not shares. Ask the charity if it can accept a transfer of shares. The registrar will then arrange it, with suitable online 'paperwork'.

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By WhichTyler
06th Nov 2019 20:58

It's possible for the share owner to give the shares to the charty (witha deed of gift) so the charity is beneficial owner while the donor is still legal owner. The charity then asks the donor to sell the shares on its behalf and transfer the proceeds.

So an exchange of letters should enable it, there are standard terms available for both. But take care to get it right before anyone does anything, otherwise you lose the tax benefits

See the last para here: https://www.gov.uk/donating-to-charity/donating-land-property-or-shares

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Replying to WhichTyler:
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By b.clarke
08th Nov 2019 09:00

Many thanks. That seems to cover it.

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By paul.benny
07th Nov 2019 08:03

Take a look sharegift.org for donations of smaller shareholdings.

Used them once, many years ago - no recent experience.

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