Gift of assets to the club are exempt from CGT. If you donate shares, investments or property to a CASC, any gain built up is not subject to CGT. In addition to this, any gift to a CASC is immediately exempt from IHT under the charitable gifts’ exemption. The gift doesn’t use up the nil-rate band, nor does it require the 7-year survival period.

Example Person A received £5,000 of BT shares in 2020 via a share incentive program, which are now worth £20,000 – Person A gifts the full amount of shares to a CASC.
Person A benefits :
No CGT due on the gift – up to £3,600 tax saving for the individual
Estate immediately reduced by £20,000 for IHT purposes
CASC benefits:
No CGT due if shares disposed of
Dividends are tax-free if shares held.

Gross donation to the club of £20,000 effectively costs person A £16,400 and they will save £8,000 in inheritance tax.

Example Person B, a higher rate taxpayer, donates £20,000 from their savings to a CASC.
Person B benefits:
Estate immediately reduced by £20,000 for IHT purposes
Claims additional 20% income tax relief on donation = £4,000
CASC benefits:
Gift Aid of 25% grosses donation to £25,000.

Gross donation to the club of £25,000 effectively cost person B £16,000 and they will save £8,000 in inheritance tax.\

For matters that may affect your personal tax position, we recommend that you seek independent financial advice.