Income Tax (Trading and Other Income) Act 2005 section 108

Gifts of trading stock to charities etc.

Section 108 provides tax relief when a trader donates items of trading stock to charities, community amateur sports clubs, certain public bodies, or designated educational establishments.

• A trader who gives away stock they manufacture or sell to a charity, registered community amateur sports club, certain listed public bodies, or a designated educational establishment does not have to include a market value receipt in their profit calculation for the donated item
• The relief applies automatically and does not require a formal claim by the trader
• The listed public bodies eligible to receive qualifying gifts include the Trustees of the National Heritage Memorial Fund and the Historic Buildings and Monuments Commission for England
• The relief may be denied if the donor or a connected person receives a benefit attributable to the gift, or if the donation is treated as a tainted charity donation under separate anti-avoidance rules