Income Tax Act 2007 section 809ZL

Certain financial advantages to be ignored

Section 809ZL identifies specific types of financial advantage that should be disregarded when determining whether a relievable charity donation is a tainted donation, ensuring that legitimate benefits already regulated by existing charity tax relief rules are not caught by the tainted donations regime.

• A financial advantage applied entirely for charitable purposes by the person who receives it is ignored when assessing whether a donation is tainted.
• Benefits received by a donor that fall within the existing Gift Aid benefit limits (for both income tax and corporation tax purposes) are excluded, so the established Gift Aid rules take priority over the tainted donations provisions.
• Benefits already factored into the calculation of relief on gifts of shares, securities and real property to charities are disregarded, avoiding a double restriction on relief.
• Benefits attributable to gifts of trading stock to charities, where those benefits are already brought into account under existing rules for the donor or a connected person, are similarly excluded from the tainted donation assessment.