For example:
Tom has 5,000 shares worth £2.40 each – or £12,000 – and he bought them for 40p each. That’s a gain of £10,000. If he has used up his annual CGT allowance, then he would pay tax at 20% on the gain – or £2,000 – if he is a higher-rate taxpayer. By giving those shares to HCF, not only does he save the £2,000 CGT, but as a higher rate taxpayer he would get income tax relief of £4,800 (40% of the value). Note that the charity does not get the 25% extra this time because it’s not cash, but Tom gets the full the 40% relief (or 45% if he is a top rate taxpayer). The charity has received £12,000 of shares for a net outlay to Tom of £7,200 and he has avoided £2,000 CGT.