Corporation Tax Act 2010 section 189

Relief for qualifying charitable donations

Section 189 sets out how qualifying charitable donations made by a company are allowed as deductions from total profits when calculating corporation tax.

• Qualifying charitable donations are deducted from a company's total profits in calculating corporation tax for an accounting period.
• The deduction is made after all other reliefs except group relief and group relief for carried-forward losses.
• The deduction cannot exceed the amount that would reduce the company's taxable total profits to nil — donations cannot create a tax loss.
• Generally, only donations made within the relevant accounting period qualify for deduction, subject to specific exceptions in the Corporation Tax Acts.