Corporation Tax Act 2009

Benefits associated with gifts

108 Receipt of benefits by donor or connected person

(1) This section applies if a company carrying on a trade makes a gift in relation to which relief is given under—

(a) section 105,

(b) section 107(2), or

(c) section 63(2) of CAA 2001 (gifts to charities etc of plant or machinery used in the trade),

and the company, or a person connected with the company, receives a benefit which is in any way attributable to the making of the gift.

(2) This section also applies if—

(a) relief is given under section 107(3) for costs of transportation, delivery or distribution incurred by a company carrying on a trade, and

(b) the company, or a person connected with the company, receives a benefit which is in any way attributable to the company’s incurring of those costs.

(3) An amount equal to the value of the benefit—

(a) is brought into account in calculating the profits of the trade, as a receipt of the trade arising in the accounting period in which the benefit is received, or

(b) if the company has permanently ceased to carry on the trade before the benefit is received, is treated as a post-cessation receipt (see Chapter 15).