Corporation Tax Act 2010 section 939E

Certain financial advantages to be ignored

Section 939E sets out the circumstances in which certain financial advantages connected with a charitable donation should be disregarded when deciding whether that donation is a tainted donation.

• A financial advantage is ignored if the recipient applies it solely for charitable purposes.
• Benefits received within the normal Gift Aid limits are ignored, so the standard Gift Aid benefit rules take priority over the tainted donation rules.
• Benefits already factored into the calculation of tax relief on gifts of shares, securities, real property or trading stock to charities are also ignored.
• These exclusions prevent donations from being classified as tainted where the financial advantages are either used charitably or are already regulated by existing tax relief provisions.