Frequently asked questions on share giving

• How do I claim tax relief on a gift of shares?
  
• Where can I find out more about how to make a gift of shares to WaterAid?
  
• Will WaterAid accept shares in any company? Is there an ethical policy?
  
• What if I want to make a gift of shares but I am not a UK taxpayer?
  
• Can WaterAid claim Gift Aid on a gift of shares?
  
• Are there any other tax-efficient ways of giving to WaterAid?

How do I claim tax relief on a gift of shares?

You can claim tax relief in any of the following ways:

• Completing the appropriate section of your Self Assessment tax return
• Requesting that your PAYE code is amended for the current tax year
• Requesting that your Self Assessment Payments on Account are reduced

If you are not sent a Self Assessment tax return at the end of the tax year, or if you want to claim relief before the end of the current tax year, you should write to your Tax Office, giving full details of your share gift, in order to claim the relief.

If you intend to claim tax relief on a gift of shares, it is very important to remember that it is your responsibility to retain evidence of the details of your share gift and the date it was made.

You may also wish to donate back to WaterAid the tax relief on your gift of shares. This can be done very simply under a new scheme that allows you to donate to charity, via your Self Assessment tax return, any tax repayment due to you that year - see below for further details.

Where can I find out more about how to make a gift of shares to WaterAid?

For further information on charitable gifts of shares and associated tax relief, please contact the Inland Revenue on 0845 302 0203 or visit www.inlandrevenue.gov.uk (see leaflet IR178 - Giving shares and securities to charity).

To speak to someone about making a gift of shares to WaterAid, please call 020 7793 2243 and ask to speak Ian.

Please remember that WaterAid is not in a position to offer financial advice or opinions, and seeks simply to inform, with no commitment or responsibility. If you require specialist assistance, you are strongly recommended to consult an independent financial advisor.

Will WaterAid accept shares in any company? Is there an ethical policy?

All gifts of shares are sold as soon as possible in order to generate funds to support the charity's work in the most cost-effective way. Our aim is to ensure that WaterAid has sufficient cash available to operate and grow, working to achieve our long-term goals and vision, however we may reserve the right to exercise our discretion in accepting gifts of shares, if we feel that the activities of the company concerned are in direct conflict with the charity's interest and objectives.

What if I want to make a gift of shares but I am not a UK taxpayer?

Non-UK taxpayers are not eligible for tax relief from the Inland Revenue on the value of any charitable gift of shares. However, you may still wish to make a gift of shares to WaterAid, which we can then sell to generate funds. Alternatively, you may prefer to sell the shares yourself and make a cash donation to WaterAid (unfortunately for non-UK taxpayers, such a gift would not be eligible for Gift Aid).

Can WaterAid claim Gift Aid on a gift of shares?

No. When it comes to gifts of shares, the Government incentive is tax relief for the donor, rather than for the charity. However, this does not mean that charities are losing out, as in practice donors may feel in a position to be more generous or give more frequently that they would or could otherwise. In order to add Gift Aid to your donation, you would need to sell the shares yourself and donate the cash proceeds to WaterAid with the necessary paperwork so that we could reclaim the tax on your gift, however this would make you ineligible for both income tax and capital gains tax relief on the sale of the shares.

Are there any other tax-efficient ways of giving to WaterAid?

Yes - there are a variety of tax-efficient methods of making a gift to WaterAid:

You may be aware that any UK taxpayer can sign a Gift Aid declaration, which allows WaterAid to reclaim from the government the basic-rate tax on all your cash donations.

From April 2004 onwards, anyone who completes a Self Assessment tax return will be able to donate to WaterAid all or part of any tax repayment due to them, simply by entering WaterAid's details in the relevant section of the tax return form. Our unique code is CAC11MG. Gifts made in this way will also be eligible for Gift Aid. To find out more about giving to WaterAid via your Self Assessment tax return, please email shares@wateraid.org or call 020 7793 2243 and ask to speak to Ian.

Your company may run a Payroll Giving scheme, through which you can make a regular gift to WaterAid directly through your payroll, and your employer may even match your contributions. WaterAid can then claim back the tax on the value of the donation, so for a higher-rate taxpayer, a monthly gift of £10 could be worth £16.60 to WaterAid, plus an extra 10% from the government!

You may feel that you wish to leave a gift to WaterAid in your will. All charitable legacies are exempt from inheritance tax, so whatever you decided to leave to WaterAid would go towards helping those most in need in the developing world.