Corporation Tax Act 2010 section 216

Disqualifying events

Section 216 provides for the clawback of charitable donations relief where a "disqualifying event" occurs during a defined provisional period following the disposal of a qualifying interest in land to a charity.

• If the donor company (or, in the case of jointly held land, any qualifying company that is an owner) reacquires an interest or right in the donated land without paying full consideration, this is a disqualifying event that causes the relief to be withdrawn entirely.
• The disqualifying event rules also catch persons connected with the donor company or owner, not just the company itself.
• The provisional period runs from the date of the disposal until the sixth anniversary of the end of the accounting period in which the disposal was made — giving HMRC a window of at least six years in which to claw back the relief.
• An exception applies where a person acquires an interest or right in the land as a result of a death — for example through a will or under intestacy rules — which will not be treated as a disqualifying event.