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It might sound far-fetched, but there are many examples of major donors giving land or buildings, either in their entirety or a proportion of the holding, to charity. There is generous tax relief available for those who donate in this way. Click here to find
out how we can help your charity benefit.
• What is it?
• What are the benefits?
• How the tax relief work
• Claiming the relief
• What
gifts of land or money attract tax relief?
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Individuals who donate land or buildings to charity benefit from income tax relief and exemption from capital gains tax, similarly to gifts of shares. The donor must be able to show that the charity has agreed to accept the gift.
An example is available on our downloads page.
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As with Share Giving, it gives you a chance to tap into a new form of support from your donors that, thanks to the generous tax relief, can be very attractive to donors. It may also be a way of acquiring property that can be used in your charitable activities.
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The relief works in the same way as Share Giving. Tax relief is given for the market value of the property as a deduction from the donor's income tax liability for the tax year when the gift is made. The income tax relief is in addition to exemption from Capital Gains Tax. The market value of a property is what it would fetch if sold. The amount that can be deducted is:
* The market value of the property; plus
• Any associated costs of transferring the property, such as solicitor's fees; less.
• Any proceeds of the sale, or the value of any benefits received in consequence of making the gift
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Gifts of property are likely to be significant in value. Donors should claim their tax relief by completing the appropriate section of their tax return. If they are not sent a tax return or if they want to claim relief before the end of the tax year, they should contact their tax office for advice. You should discuss the arrangements carefully with your advisers. Donors should seek tax advice from their financial advisers.
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Any land and buildings are eligible for relief provided the whole of the donor's interest in the property is given to the charity. A donor cannot give their house to a charity and continue to live in it, because they would be retaining an interest in the property.
Offers of gifts of land or buildings are likely to be quite rare, but of significant value to your charity.
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Template Press Release Gifts of Land & Buildings.
Example of how the relief works.
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