E1.813 Gifts of land and securities
Relief from income tax can be claimed by an individual who makes a gift to a charity of a 'qualifying investment' or who disposes of such an investment to a charity at less than its true value1. The relief is subject to the 'tainted donations' rules at E1.813A. For the equivalent relief available to companies, see D1.323, D1.324.
For the purposes of this relief, a qualifying investment is2:
(a) a qualifying interest in land in the UK (see below)
(b) shares or securities listed on a recognised stock exchange 3 or dealt in on any market in the UK that is designated for this purpose by HMRC Order (which includes the Alternative Investment Market (AIM))
(c) units in an authorised unit trust
(d) shares in an open-ended investment company
(e) holdings in certain foreign collective investment schemes, generally schemes set up outside the UK that are similar to authorised unit trusts and open-ended investment companies4
On a claim for the relief, an amount is allowed as a deduction in calculating net income of the donor (at Step 2 in the calculation of income tax liability) for the tax year in which the disposal is made5. For details of the income tax calculation steps, see E1.101B.
The amount deductible (the 'relievable amount') depends on whether the disposal is a gift or a disposal at undervalue; see below as to how the relievable amount is quantified in each case. No time limit is specified for making a claim,