Corporation Tax Act 2010 section 939F

Removal of corporation tax relief in respect of tainted donations etc.

Section 939F removes corporation tax relief that would otherwise be available on tainted donations, and extends this denial of relief to any associated donations forming part of the same arrangements.

• Where a company makes a tainted donation, any corporation tax relief that would otherwise have been available on that donation is denied.
• Relief is also denied on any associated donations — other donations made as part of the same arrangements — even if those other donations are not themselves tainted.
• Donations made by charity-owned trading subsidiaries to their parent charity, or by relevant housing providers linked to the recipient charity, are not treated as associated donations and so remain unaffected by these rules.
• The types of corporation tax relief denied include capital allowances relief on gifts of plant and machinery, relief on gifts of trading stock, and charitable donations relief.