Gifting your assets
If you’re looking to give a family member a gift or donate to a favourite charity, you might feel it sullies the gesture to think about the tax implications. But there are generous tax reliefs offered by HMRC, which could mean more money for your beneficiaries or the charitable causes you support. Making gifts to individuals more than seven years before you pass away can be a good way to reduce inheritance tax. And then there’s gifting shares to charity, where the proceeds are exempt from capital gains tax and also attract income tax relief, making the gift of shares potentially very tax efficient.
What to consider when gifting
- Is it tax efficient for me to make a gift of my investment assets? We can help you to ascertain how much tax would otherwise be due and estimate the benefits of making a gift.
- Should I discuss my overall financial situation before arranging a gift? We can take you through your financial plan before making a gift. That way, you’ll know how much of your portfolio you can afford to gift and what this will mean for your overall tax position and remaining assets. Which investments would work best as a gift to my chosen charities? Our investment managers can suggest the holdings which will benefit from the highest tax relief, whilst also leaving you with a balanced portfolio of assets.
- What needs to be put in place if I want to gift to a smaller charity? For charities without their own investment portfolios, our dealers can arrange for a transfer of shares to the Charities Aid Foundation (CAF) dealing account at Smith & Williamson. From here they can be sold and the proceeds sent to your favoured charity.
How we work with you
- Direct access
Our qualified team of professionals is at your service. When you speak to your representative, you know they’re on top of the issues that affect you.
- A tailored solution
You will receive a personal service. We provide recommendations tailored to your portfolio.
- A unique holistic financial plan
We consider your investments, tax and financial planning when considering your gift to your chosen charity or beneficiary.
We can take care of the details when administering your gift.
* References to taxation are based on Smith & Williamson’s understanding of current tax legislation and HM Revenue & Customs practice, which may change in the future.
Capital at risk. The value of investments and the income from them can fall as well as rise and you may not receive back the original amount invested.
Leaving a legacy
Careful planning now can help you make the most of the legacy you want to leave.
Receiving a legacy
An inheritance often comes with a desire to protect the assets, we can help you manage that responsibility.