Corporation Tax Act 2009 section 105

Gifts of trading stock to charities etc.

Section 105 provides relief from having to recognise a trading receipt when a company gives away its own trading stock to a charity or other qualifying body.

• When a company gives articles it manufactures or sells to a charity, registered community amateur sports club, designated educational establishment, or certain listed heritage and arts bodies, no amount needs to be brought into account as a trading receipt
• The relief applies automatically — no formal claim is required by the company
• The relief may be restricted if the donor or a connected person receives a benefit in return for the gift, or if the donation is a tainted charity donation
• The listed heritage and arts bodies qualifying for the relief are the Trustees of the National Heritage Memorial Fund, the Historic Buildings and Monuments Commission for England, and the National Endowment for Science, Technology and the Arts