Income Tax Act 2007 section 419

Gift aid: restrictions on associated benefits

Section 419 deals with how associated benefits are treated when calculating gift aid relief, specifically where a gift straddles the 6 April 2007 commencement date and the benefit was received or relates to a period before that date.

• This transitional rule applies where a gift aid donation is made on or after 6 April 2007 but an associated benefit was received before that date or relates wholly or partly to a period before that date.
• In such cases, the benefit calculation under section 419(8) is modified so that the relaxations introduced by conditions C and D do not apply.
• The effect is that the older, stricter rules for associated benefits continue to govern benefits that pre-date the new legislation, even though the gift itself falls under the 2007 Act.
• This prevents donors from gaining an unintended advantage by timing a gift to fall after 6 April 2007 while having already enjoyed a benefit under the previous, less restrictive transitional treatment.