If you donate shares to RNLI, you can get income tax relief on the donation. If you are a higher rate taxpayer, for instance, and donate £1,000 worth of shares, you will get £400 tax relief. Or, if you pay tax at the standard rate, the relief would be £200. You can claim this on your self-assessment tax form, or by contacting your local tax office.
Capital Gains Tax
Normally, if you sell shares for more than what they were valued at when you acquired them, this is known as making a Capital Gain. You can make gains of up to an annual limit (the allowance for the tax year 20011–12 is £10,600) without having to pay tax on this money but anything above that will be subject to Capital Gains Tax (up to 40%). However, you will not have to pay any of the tax on shares that you donate to the RNLI. This exemption may therefore be important to you if you have already reached, or are likely to reach, the annual limit.