Q: I have about £1000 worth of shares in a bank. I now understand its impermissible to hold such shares, so I was going to sell them and give the money to charity with no expectation of reward. However I’ve learnt from HMRC that if I gift qualifying shares to a charity there is income tax relief and potentially capital gains tax relief available.
Can I dispose of these bank shares in such a way, thus obtaining the income tax relief as a benefit?
الجواب حامدا ومصليا ومسلما ومنه الصدق والصواب
A: One may benefit from the tax relief by donating the shares to charity without intention of reward. Donation to charity here is simply absolution from the responsibility of unlawful earning whilst the tax relief is provided by a third party.