Beyond cash giving

Most Catholics give cash to the Diocese of Shrewsbury, registered charity number 234025. For some donors the most useful gift will not be cash. It might be a holding of listed shares, a property, a piece of artwork, or another asset of real value. UK tax law treats gifts of qualifying assets to charity favourably, and the diocese can receive and apply them. This guide sets out how, in outline. Take professional advice before giving an asset of any size.

Gifts of qualifying shares

If you give shares listed on a recognised stock exchange to a UK charity, two reliefs apply at once. You pay no Capital Gains Tax on any growth in the value of the shares since you bought them, and you can claim income tax relief on their full market value on the day they are transferred. For a higher-rate taxpayer the combined relief can be more than 40 per cent of the value of the gift.

So giving £10,000 of shares can cost a higher-rate taxpayer far less than giving £10,000 of cash, while the diocese receives the same value. The diocese accepts share transfers through its broker. Transfer the shares directly to the diocese rather than selling them first, because selling first loses the Capital Gains Tax relief.

Gifts of land and buildings

Gifts of UK land and buildings carry the same treatment as shares: no Capital Gains Tax on disposal and full income tax relief on the market value, claimed through your Self Assessment return for the year of the gift.

The diocese accepts a gift of land or property only after due diligence, which means a survey, a valuation, and a review of any covenants, leases, or planning conditions. A property that suits diocesan use may be kept as a presbytery, parish hall, school site, or housing for retired clergy. Otherwise the diocese normally sells it and applies the proceeds to its charitable purposes, or to a fund you name. Some donors give a property by reversionary legacy, keeping the right to live there for life with the asset passing to the diocese on death. Both routes need careful legal advice.

Artwork, vestments, and sacred items

The diocese is regularly offered artwork, sacred vessels, vestments, books, and other items of religious or historical value. Items that suit a particular church or chapel are accepted for that use. Items of substantial value may be kept or, where you agree, sold to support the diocese. A gift of a work of art to a charity raises no Capital Gains Tax. The income tax position is more limited than for shares or property, so take advice first.

Gift Aid does not apply to non-cash gifts

One point of detail matters here. Gift Aid applies only to cash. Gifts of shares, property, or art do not qualify for the 25p in the £1 uplift. Their efficiency comes from the Capital Gains Tax and income tax reliefs above. Some donors sell an asset and Gift Aid the cash proceeds instead, but that forfeits the CGT and income tax reliefs. Which route is better depends on your circumstances, which is one reason advice matters before a gift of this size.

Inheritance Tax and lifetime gifts

A lifetime gift of a major asset to a charity also reduces the size of your taxable estate for Inheritance Tax. Together with the reduced 36 per cent rate that applies when 10 per cent or more of a net estate is left to charity, careful giving can deliver real tax savings while supporting the Church.

Beginning the conversation

All major gifts go through the Financial Secretary at the Curial Office, who will talk it through with you and your advisers in confidence, confirm the diocese can use the asset, arrange any valuations or legal work, and see that the gift is acknowledged correctly for your tax return. There is no minimum value and no obligation. The first call simply opens the conversation. The contact for this is listed below. The address for written correspondence is Diocese of Shrewsbury, Curial Offices, 2 Park Road South, Prenton, Wirral CH43 4UX.