HC Deb 06 April 2000 vol 347 cc589-90W
Mr. Tom Clarke

To ask the Chancellor of the Exchequer if he will make a statement on his plans to change the tax treatment of shares donated to charity. [116604]

Miss Melanie Johnson

In his Budget speech the Chancellor of the Exchequer announced a radical package of measures aimed at Getting Britain Giving. The package included a new tax relief on gifts to a charity of certain qualifying investments.

Qualifying investments include:

  • shares or securities which are listed or dealt in on a recognised stock exchange;
  • units in an authorised unit trust;
  • shares in an open ended investment company; and an interest in an offshore fund.

The donor will be able to claim a corporation tax or income tax deduction for the full market value of the gift, plus incidental expenses of transfer, less any consideration

or benefit received. The new relief will be in addition to the existing relief for gifts of shares and other assets to a charity when calculating capital gains.

The new relief comes into effect for gifts made on or after 1 April 2000 for companies and 6 April 2000 for individuals.