4. Donating land, property or shares

You don’t have to pay tax on land, property or shares you donate to charity. This includes selling them for less than their market value.

You get tax relief on both:

  • Income Tax
  • Capital Gains Tax

You can’t get Income Tax relief on donations to community amateur sports clubs (CASCs).

You must keep records of the donation to show that you’ve made the gift or sale and that the charity has accepted it.

Income Tax relief

You can pay less Income Tax by deducting the value of your donation from your total taxable income. Do this for the tax year (6 April to 5 April) in which you made the gift or sale to charity.

How to claim

If you complete a Self Assessment tax return, add the amount you’re claiming in the ‘Charitable giving’ section of the form. This will reduce your Self Assessment bill.

If you don’t complete a tax return, write to HM Revenue and Customs (HMRC) with details of the gift or sale and your tax relief amount. You’ll either get a refund, or your tax code will be changed so you pay less Income Tax for that tax year.

Capital Gains Tax relief

You don’t have to pay Capital Gains Tax on land, property or shares you give to charity.

You may have to pay if you sell them for more than they cost you but less than their market value. Work out your gain using the amount the charity actually pays you, rather than the value of the asset.

Selling land, property or shares on behalf of a charity

When you offer a gift of land, property or shares, the charity may ask you to sell the gift on its behalf.

You can do this and still claim tax relief for the donation, but you must keep records of the gift and the charity’s request. Without them, you might have to pay Capital Gains Tax.