Corporation Tax Act 2010 section 212

Meaning and amount of "disposal-related liability"

Section 212 defines what a "disposal-related liability" means in the context of charitable donations relief, and explains how contingent liabilities are valued when calculating the net benefit to a charity.

• A disposal-related liability is any obligation a charity takes on in connection with a qualifying investment it receives.
• Where the liability depends on a future uncertain event (a contingency), the amount brought into account depends on whether that event actually occurs.
• If the contingency does occur, the actual amount of the liability incurred is used in the calculation of the net benefit to the charity.
• If the contingency never occurs, the liability is treated as nil, meaning no reduction is made to the net benefit.