Corporation Tax Act 2010 section 473

Gifts of money from companies: corporation tax liability and exemption

Section 473 deals with the corporation tax treatment of monetary gifts received by charitable companies from non-charitable companies, and the exemption available when those gifts are applied to charitable purposes.

• When a charitable company receives a gift of money from a non-charitable company, the gift is treated as an amount chargeable to corporation tax on income.
• The gift is exempt from being included in total profits to the extent it is applied exclusively to charitable purposes.
• The charitable company must make a formal claim in order to benefit from this exemption.
• This is a freestanding charge to corporation tax — it applies independently of any other income or gains the charity may have.