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 portfolio of listed shares, a property, a piece of artwork, or another asset of significant value. UK tax law treats gifts of qualifying assets to charity favourably, and the diocese can receive and apply them. This guide explains how, in outline. Always 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. First, you do not pay Capital Gains Tax on any growth in the value of the shares since you bought them. Second, you can claim income tax relief on the full market value of the shares on the day they are transferred to the charity. For a higher-rate taxpayer, the combined relief can exceed 40 per cent of the value of the gift.

This means that giving £10,000 of shares to the diocese can cost a higher-rate taxpayer significantly less than giving £10,000 of cash, while delivering the same value to the diocese. For Catholics with appreciated shareholdings, this is often the most efficient form of giving available in the UK.

The diocese can accept transfers of shares through its broker. The Financial Secretary will provide stock transfer details once the gift is agreed. The transfer should always be made directly from your account to the diocese's account, not sold first, to preserve the Capital Gains Tax relief.

Gifts of land and buildings

Gifts of UK land and buildings to a charity attract the same combined treatment as shares, with no Capital Gains Tax on disposal and full income tax relief on the market value. The relief is claimed through your Self Assessment tax return for the year of the gift.

The diocese will only accept a gift of land or property after due diligence. The Financial Secretary will arrange a survey, valuation, and review of any existing covenants, leases, or planning conditions. Where a property is suitable for diocesan use, it may be retained as a presbytery, parish hall, school site, or housing for retired clergy. Where it is not suitable, the diocese will normally sell the property and apply the proceeds to its general charitable purposes or to a fund nominated by the donor.

Some donors choose to give a property by reversionary legacy, retaining the right to live in the home during their lifetime, with the asset passing to the diocese on death. This is also possible during life through a more complex structure called a "gift with reservation". Both routes need careful legal advice.

Artwork, vestments, and ecclesiastical items

The diocese is regularly offered gifts of artwork, sacred vessels, vestments, books, and other items of religious or historical significance. Items that suit a particular church or chapel are accepted for that use. Items of substantial value may be retained or, where the donor agrees, sold to support the work of the diocese. Where a work of art is given to a charity, no Capital Gains Tax arises on the gift. The income tax position depends on the asset and is more limited than for shares or property. Always take advice before giving art or antiques.

Gift Aid does not apply to non-cash gifts

An important point of detail: Gift Aid only applies to cash donations. Gifts of shares, property, or art do not qualify for the 25p in the £ Gift Aid uplift. Their tax efficiency comes from the Capital Gains Tax and income tax reliefs described above, not from Gift Aid. Some donors give the cash proceeds of a sale and Gift Aid those proceeds, but the CGT and income tax reliefs are then forfeited. Which route is more efficient depends on individual circumstances and is one of the reasons professional advice matters before any gift of this size.

Inheritance Tax and lifetime gifts

Lifetime gifts of major assets to a charity also reduce the size of your taxable estate for Inheritance Tax purposes. Combined 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.

The role of the Financial Secretary

All major gifts to the Diocese of Shrewsbury are routed through the Financial Secretary, Carol Lawrence, at the Curial Offices in Prenton. Her role is to:

• Discuss the gift with you and your advisers in confidence
• Confirm that the diocese can accept the asset and apply it usefully
• Arrange any necessary valuations, surveys, or legal work
• Provide the diocese's stock transfer details, bank details, or other instructions to your professional team
• See that the gift is acknowledged correctly for your tax return

The conversation is always confidential. The diocese understands that decisions of this size take time, and there is no pressure to move quickly. Many of the diocese's largest gifts have been considered for years before they were finalised.

Always with professional advice

The reliefs above are real and substantial, but they depend on getting the structure right. A gift made in the wrong way, or sold and then donated, can lose most of its tax efficiency. Any donor considering a gift of shares, property, art, or other major asset should take advice from a solicitor or chartered accountant familiar with charitable giving in the UK. The diocese can suggest names of advisers used by other Catholic donors if useful.

Beginning the conversation

The first step is a private email or phone call to Carol Lawrence, Financial Secretary, Diocese of Shrewsbury. Her email is carol.lawrence@dioceseofshrewsbury.org and the Curial Offices number is 0151 652 9855. The address for written correspondence is Diocese of Shrewsbury, Curial Offices, 2 Park Road South, Prenton, Wirral CH43 4UX. There is no minimum value, and there is no obligation. The first call simply opens the conversation.