Taxation of Chargeable Gains Act 1992 section 257A

Tainted charity donations

Section 257A removes the capital gains tax relief normally available on gifts to charities where the donation is a tainted donation or an associated donation.

• The normal CGT relief for gifts to charities under section 257 is denied where a donation is "tainted"
• A tainted donation is one where arrangements exist linking the donation to arrangements from which the donor (or a connected person) receives a financial advantage
• The denial of relief also extends to any "associated donation" connected with the tainted donation
• The tainted donation rules apply to both individuals (under income tax rules) and companies (under corporation tax rules)