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A client has become very wealthy over many years, but now has little income that is subject to tax. He wishes to make substantial gifts to charity, but is concerned that gift aid will not be of benefit
My client has made a lot of money and wishes to give substantial amounts to charity. However his current income is relatively low so making very large gift aid donations would not be ideal.
He has two particular assets which are pregnant with tax charges and I wonder whether he could give those to charity and avoid the tax. Certainly if he realises the assets and gives the net proceeds after tax there will be much less money for the good causes.
One asset is a loan note which he expects to receive as part of an earn-out deal that was set up two years ago. My understanding is that he is likely to receive £600 000 nominal value of loan notes in April 2014 which will be redeemed in October 2014 and the redemption will be treated as a disposal which uses...
