Income Tax Act 2007 section 444

Disqualifying events

Section 444 sets out the circumstances in which tax relief for the gift of a qualifying interest in land to charity can be clawed back if a "disqualifying event" occurs within a specified provisional period.

• If a disqualifying event occurs within the provisional period, the individual who gifted the land (or, where land was jointly held, each owner) is treated as never having been entitled to the relief, and tax assessments are adjusted accordingly.
• A disqualifying event occurs when the donor, a joint owner, or a person connected with them reacquires an interest or right over all or part of the gifted land without paying full market value — for example, buying it back from the charity at an undervalue or entering into an arrangement granting them rights over it.
• An exception applies where a person acquires an interest or right in the land as a result of a death — whether by will, intestacy, or otherwise — so inheritances do not trigger a disqualifying event.
• The provisional period runs from the date of the disposal until the fifth anniversary of the normal self-assessment filing date for the tax year in which the disposal was made.

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