Corporation Tax Act 2010 section 939B

Relievable charity donations

Section 939B defines what counts as a "relievable charity donation" for the purposes of the tainted donations rules, and sets out the various tax reliefs and provisions that are relevant to that definition.

• A relievable charity donation is any gift or disposal made by a person to a charity that is eligible for tax relief, either because relief is available under one of the specified relieving provisions or because the charity can claim a tax repayment in respect of it.
• The definition of eligibility is tested by ignoring the tainted donation rules themselves — so a donation qualifies if it would attract relief but for those rules.
• The relevant relieving provisions cover a wide range of tax reliefs including Gift Aid, gifts of chargeable assets, gifts of plant and machinery, payroll giving, gifts of trading stock, gifts of shares, and charitable donations relief under corporation tax.
• Income arising under a UK settlement to which a charity is entitled under the settlement terms is treated as a gift made by the trustees to the charity, bringing such amounts within the scope of these rules.