Income Tax Act 2007

520Gifts entitling donor to gift aid relief: income tax treated as paid

This section has no associated Explanatory Notes

(1)This section applies if a gift is made to a charitable trust by an individual and the gift is a qualifying donation for the purposes of Chapter 2 of Part 8 (gift aid).

(2)The charitable trust is treated as receiving, under deduction of income tax at the basic rate for the tax year in which the gift is made, a gift of an amount equal to the grossed up amount of the gift.

(3)The grossed up amount of the gift is the amount of the gift grossed up by reference to the basic rate for the tax year in which the gift is made.

(4)The income tax treated as deducted is treated as income tax paid by the trustees of the charitable trust.