Income Tax Act 2007 section 522

Gifts of money from companies: income tax liability and exemption

Section 522 sets out the income tax charge that can arise when companies make monetary gifts to charitable trusts, and provides an exemption where those gifts are applied to charitable purposes.

• Income tax is charged on gifts of money made by companies to charitable trusts, based on the full amount arising in the tax year
• The section does not apply where the donating company is itself a charity — separate rules under section 523 cover that situation
• Gifts are exempt from the income tax charge to the extent they are applied solely to charitable purposes
• The trustees of the receiving charitable trust are liable for any income tax charged under this section

---