Income Tax Act 2007 section 809ZI

Relievable charity donations

Section 809ZI defines what counts as a "relievable charity donation" and establishes the key terms used in the tainted donations rules, including which tax reliefs are covered and how settlement income paid to charities is treated.

• A relievable charity donation is any gift or disposal made to a charity that qualifies for tax relief, either because relief would be available under one of the specified relieving provisions, or because the charity can claim a tax repayment on it
• The tainted donation provisions are the rules that can deny tax relief where a donation to charity is linked to arrangements conferring a benefit — they appear in this chapter, in section 257A of the Taxation of Chargeable Gains Act 1992, and in Part 21C of the Corporation Tax Act 2010
• The relevant relieving provisions cover a wide range of donation reliefs including gift aid, payroll giving, gifts of shares, gifts of chargeable assets, gifts of plant and machinery, and gifts of trading stock for both income tax and corporation tax purposes
• Where a charity receives income it is entitled to under a UK settlement, that income is treated as a gift made by the settlement trustees, bringing it within the scope of these rules