What did sections 105–106 of Schedule 2 to the Income Tax Act 2007 deal with?

Sections 105 and 106 originally contained rules concerning transactions between charities and their substantial donors. These rules were designed to prevent tax advantages arising from non-arm's length transactions between a charity and individuals who had made significant donations to it under United Kingdom law.

Are sections 105–106 of the Income Tax Act 2007 still in force?

No. Sections 105 and 106 were repealed by the Finance Act 2011 under Schedule 3, paragraph 14. They are now shown as omitted from the legislation and carry no continuing legal application. Accountants dealing with current charity tax matters do not need to consider these provisions.

Which legislation repealed the substantial donor transaction rules in the Income Tax Act 2007?

The substantial donor transaction rules in sections 105–106 of Schedule 2 to the Income Tax Act 2007 were repealed by Finance Act 2011, Schedule 3, paragraph 14. Since the repeal, these specific provisions no longer govern transactions between charities and their significant donors in the United Kingdom.

Could historic charity transactions still be affected by the repealed sections 105–106?

Yes. Any historic transactions that occurred while sections 105–106 were in force would have been governed by the law as it stood at the relevant time. These repealed provisions may still be relevant for understanding historical tax positions, though other general anti-avoidance provisions may also apply.

Income Tax Act 2007 sections 105–106

Transactions with substantial donors

Sections 105–106 were provisions relating to the tax treatment of transactions between charities and their substantial donors, but have been repealed.

Sections 105 and 106 of Schedule 2 to the Income Tax Act 2007 previously dealt with transactions between charities and substantial donors
These provisions were repealed by Finance Act 2011, Schedule 3, paragraph 14
The sections are no longer in force and carry no current legal effect
Any historic transactions that fell under these rules would have been governed by the law as it stood at the relevant time

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