AIM and PLUS shares qualify for Gift Aid

HMRC have made orders to designate the AIM and PLUS-quoted markets as designated markets for the purposes of tax relief of qualifying donations to charity (ITA 2007, s 432(1)(a), TA 1988, s 587B(9), ITEPA 2003, s 421L(6)(b)).

AIM shares and securities had qualified for relief, but from 19 July 2007 the legislation provided that qualifying stock markets had to be formally designated for the purpose of that legislation.

The Revenue says its had always intended to make a designation order in respect of AIM and the PLUS-quoted market, and the department has confirmed that taxpayers who made a donation of AIM shares and securities in that period - i.e. between 19 July 2007 to 20 May 2009 - now qualify for Gift Aid and should, if necessary, make a late claim.

In the case of PLUS-quoted shares, if anyone has failed to claim charitable gift relief or been denied this relief in the period following 19 July 2007, they should contact HMRC. Claims will be dealt with on a case by case basis.

Baker Tilly's head of tax, George Bull, suggested that ‘the difference in treatment seems to be because the PLUS-quoted market was not previously accepted as a recognised stock exchange’, but he noted that HMRC ‘do not intend to disadvantage claimants’.

Issue: 4209 / Categories: News , Gift Aid , Income Tax