Income Tax Act 2007 section 521A

Gifts under payroll deduction schemes: income tax liability and exemption

Section 521A sets out the income tax treatment of gifts made to charitable trusts by individuals through payroll giving schemes, including the exemption where gifts are applied to charitable purposes.

• Income tax is charged on gifts made to charitable trusts through payroll deduction (payroll giving) schemes
• The tax is charged on the full amount of gifts arising in the tax year
• Gifts applied exclusively to charitable purposes are exempt and not included in total income calculations
• The trustees of the charitable trust are liable for any income tax charged under this section