Income Tax Act 2007 section 552

Adjustment if section 551(1) and (2) applied to single transaction

Section 552 prevents double counting where both the income and gift aid provisions of section 551 have been applied to the same transaction.

• Where a single transaction triggers both the income requirement and the gift aid requirement under section 551, an adjustment is needed to avoid double counting.
• The section ensures that the same amount is not used twice when calculating the restriction on charitable tax reliefs.
• This provision applies specifically when both subsections (1) and (2) of section 551 have been engaged by one transaction.
• The rule originates from the former section 506C(4) of the Income and Corporation Taxes Act and was carried forward into the Income Tax Act 2007.