Corporation Tax Act 2010 section 209

Value of net benefit to charity

Section 209 explains how to calculate the value of the net benefit to a charity when a company disposes of a qualifying investment to that charity, including anti-avoidance rules that may restrict the value used.

• The net benefit to the charity is normally the market value of the qualifying investment at the time of disposal, but if the charity is subject to any disposal-related obligation, that value is reduced by the total disposal-related liabilities.
• An anti-avoidance rule applies where a company acquired the investment (or something from which it derives) within four years of the disposal, as part of a scheme whose main purpose was to obtain or increase tax relief — in that case, the relevant value is the lower of market value and acquisition cost.
• A "scheme" is defined very broadly to include any arrangement or understanding, whether or not legally enforceable, and whether it involves a single transaction or multiple transactions.
• Supporting definitions for market value, acquisition value, disposal-related obligations and disposal-related liabilities are set out in sections 210, 210A, 211 and 212 respectively.