Corporation Tax Act 2009 section 107

Gifts of medical supplies and equipment

Section 107 provides tax relief for companies that donate medical supplies or equipment from their trading stock for humanitarian purposes.

• When a company gives away medical supplies or equipment from its trading stock for humanitarian purposes and for human use, no amount needs to be included as a taxable receipt in the profit calculation
• The company can also deduct any costs of transportation, delivery or distribution it incurs in making the gift, claimed in the accounting period in which those costs arise
• The Treasury has the power to exclude specific types of medical supplies or equipment from this relief by order, although this power has not yet been used
• The relief must be read alongside section 108, which addresses situations where the donor company or a connected person receives benefits in return for the gift