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HMRC internal manual

Capital Gains Manual

Gifts: to charities and certain other bodies

A gift or other bargain not made at arm’s length is treated as made on a no gain/no loss basis if the disposal is to:

  • a charity (see CG67501) or to a national heritage body listed in Schedule 3 IHTA 1984, see CG66621+ and TCGA92/S257


  • a housing organisation, see CG66635+ and TCGA92/S259


  • an employee trust, see CG36000+ and TCGA92/S239.

If you are in any doubt as to whether or not a particular organisation is a charity you should refer to Specialist PT Charities.

The national heritage bodies to which Schedule 3 IHTA applies are listed in IHTM11224. If you are in any doubt about any of the bodies you should refer to Capital Gains Technical Group.

Finance Act 2000 introduced Income/Corporation Tax relief for gifts of land and quoted shares to charities. There is a brief outline of these at CG66630. A donor may claim both Income/Corporation Tax relief and the relief from Capital Gains Tax. If the donor is eligible to claim Income/Corporation Tax relief there may be an effect on the charity’s acquisition cost. This is explained in CG66630 and will be relevant only if the charity is liable to Capital Gains Tax on a disposal of the asset.