Tax when your limited company gives to charity
Land, property and shares
Your limited company could pay less Corporation Tax if it gives or sells any of the following to charity:
- land or property
- shares in another company
You can바카라 사이트™t claim for gifts or sales of shares in your own company.
Contact your chosen charity first to make sure it can accept your gift.
What you get
If you give these to charity (including selling them for less than they바카라 사이트™re worth):
- you won바카라 사이트™t have to pay tax on capital gains
- you can deduct the value of the gift (its 바카라 사이트˜market value바카라 사이트™) from your business profits before you pay tax
If you donate or sell to a community amateur sports club (CASC), you don바카라 사이트™t pay tax on capital gains but you can바카라 사이트™t deduct the value of the gift from your business profits.
Work out the market value
You바카라 사이트™ll need to know how much the gift would sell for in an open market (its 바카라 사이트˜market value바카라 사이트™) to calculate your tax relief. You can get professional help with this.
What you need to do
You must keep documents relating to the donation to show that you바카라 사이트™ve made the gift or sale and that the charity has accepted it. You must keep these records for at least 6 years.
Land or property
You must get a letter or certificate from the charity which contains:
- a description of the land or property
- the date of the gift or sale (the 바카라 사이트˜disposal date바카라 사이트™)
- a statement confirming that it now owns the land or property
Shares
You must fill in a stock transfer form to take the shares out of your company바카라 사이트™s name and put them into the charity바카라 사이트™s name.
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 charity바카라 사이트™s request. Without them, you might have to pay Corporation Tax.