Income Tax Act 2007 section 422

Disqualified overseas gifts

Section 422 sets out the rules for determining when a charitable gift made by a non-UK resident donor is disqualified from being treated as a qualifying donation under the Gift Aid scheme.

• This section applies specifically to gifts made by donors who are neither UK resident nor in Crown employment — referred to as "overseas gifts"
• An overseas gift is disqualified if the total grossed-up amounts of all overseas gifts made by the donor in the tax year exceed the donor's "charged amount" for that year
• The "charged amount" (defined in section 427) broadly represents the donor's income and gains that have actually been subject to UK income tax or capital gains tax
• This test operates alongside all the other conditions for qualifying donations set out in sections 416 to 421, adding an extra requirement for non-resident donors