Charitable Trust

[Tearz]

Maybe Eric Mc can help?

I loaned £100K to a company in 1995 and I wish to sell my remaining 20% shares next week and put all of the money into a charitable trust.

What are the tax implications?

Thanks

Edited by Tearz on Monday 28th April 21:57

[Eric Mc]

Was it a real "loan" or was it a purchase of shares in a company?

If the latter, was it a trading company?

[Tearz]

Eric Mc said:

Was it a real "loan" or was it a purchase of shares in a company?

If the latter, was it a trading company?

It was a purchase of shares in a company.

It is a trading company.

Thanks

[Eric Mc]

Tearz said:

Maybe Eric Mc can help?

I loaned £100K to a company in 1995 and I wish to sell my remaining 20% shares next week and put all of the money into a charitable trust.

What are the tax implications?

Thanks

Edited by Tearz on Monday 28th April 21:57

I presume you will receive your "cash" when you sell your remaining shares. Depending on whether you get more for the sale of the cash than what you originally paid for those shares, or just your original investment back, there might be Capital Gains Tax to pay.

If you reinvest the proceeds into a charity of your choice, that is a separate matter and the charity might be able to claim Gift Aid Relief on the donation. If you are a higher rate tax payer, you could claim some Higher Rate tax relief.

The charity has to be a Registered Charity.