Part 11Charitable companies etc
Chapter 2Gifts and other payments
Gifts and other payments to charitable companies
471Gifts qualifying for gift aid relief: income tax treated as paid
1
This section applies if a gift is made to a charitable company by an individual and the gift is a qualifying donation for the purposes of Chapter 2 of Part 8 of ITA 2007 (gift aid).
2
The charitable company 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
References in this section to the grossed up amount of the gift are to 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 charitable company.
472Gifts qualifying for gift aid relief: corporation tax liability and exemption
1
If a charitable company receives a gift from an individual and the gift is a qualifying donation for the purposes of Chapter 2 of Part 8 of ITA 2007 (gift aid), the grossed up amount of the gift is treated as an amount in respect of which the company is chargeable to corporation tax, under the charge to corporation tax on income.
2
But the grossed up amount of the gift is not taken into account in calculating total profits so far as that grossed up amount is applied to charitable purposes only.
3
References in this section to the grossed up amount of a gift are to 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 exemption under subsection (2) requires a claim.
5
A charitable company is treated as having made a claim for any exemption to which it may be entitled under subsection (2) if—
a
it receives a gift as a result of a direction under section 429(2) of ITA 2007 (giving through self-assessment return), and
b
as a result of section 429(4) of that Act, the gift is treated as a qualifying donation for the purposes of Chapter 2 of Part 8 of that Act.
473Gifts of money from companies: corporation tax liability and exemption
1
If a charitable company receives a gift of a sum of money from a company which is not a charity, the gift is treated as an amount in respect of which the charitable company is chargeable to corporation tax, under the charge to corporation tax on income.
2
But the gift is not taken into account in calculating total profits so far as it is applied to charitable purposes only.
3
The exemption under subsection (2) requires a claim.
474Payments from other charities: corporation tax liability and exemption
1
Subsection (2) applies if a charitable company receives from another charity a payment which—
a
is not made for full consideration in money or money’s worth,
b
is not chargeable to corporation tax apart from this section, and
c
is not of a description which (on a claim) would be exempt from corporation tax under any of the exemptions conferred by this Part.
2
The payment is treated as an amount in respect of which the charitable company is chargeable to corporation tax, under the charge to corporation tax on income.
3
But the payment is not taken into account in calculating total profits so far as it is applied to charitable purposes only.
4
In the case of a payment to which section 494 of ITA 2007 (discretionary payments by trustees) applies, the references in subsections (2) and (3) to the payment are to be read as references to the grossed up amount of the discretionary payment within the meaning of that section.
5
The exemption under subsection (3) requires a claim.