Chapter 1: Nature of relief
Overview
751.This Chapter allows a deduction from a company’s total profits for qualifying charitable donations and explains what constitutes qualifying charitable donations. It is based on sections 338, 338A, and 339(1) of ICTA.
Section 189: Relief for qualifying charitable donations
752.This section allows qualifying charitable donations as deductions from a company’s total profits. It is based on section 338 of ICTA.
753.Allowable deductions are limited to an amount which reduces the taxable total profits for a period to nil.
Section 190: Qualifying charitable donations: meaning
754.This section gives the meaning of qualifying charitable donations. It is based on sections 338A(1) to (3) and 339(1) of ICTA.
755.Subsection (2) rewrites both section 338A(3) and section 339(1)(b) of ICTA. These two subsections cover the same ground.
756.A similar rule is found in section 337A(1)(b) of ICTA which provides that a company’s income from any source is to be computed without any deduction in respect of charges on income. This is rewritten and inserted into Chapter 1 of Part 20 of CTA 2009 (restriction of deductions) by Schedule 1 but expressed as a qualifying charitable donation rather than a charge on income.
