(1)An individual who makes a gift to a charity which is a qualifying donation is entitled to the relief set out in subsection (2).
(2)The Income Tax Acts have effect in their application to the individual for the tax year in which the gift is made as if—
(a)the gift had been made after deduction of [F1income tax at the basic rate, and]
(b)the basic rate limit [F2and the higher rate limit] (see [F3section 10]) [F4and additionally, in the case of a Scottish taxpayer, [F5the upper limit for the Scottish basic rate and the limits for any Scottish rates above the Scottish basic rate,]] were increased by an amount equal to the grossed up amount of the gift.
(3)See subsection (7) of section 535 of ITTOIA 2005 (gains from contracts for life insurance etc: top slicing relief) for provision about how relief under this Chapter is to be ignored for the purpose of calculating relief under that section.
Textual Amendments
F1Words in s. 414(2)(a) substituted (6.4.2018) by The Scottish Rates of Income Tax (Consequential Amendments) Order 2018 (S.I. 2018/459), arts. 1(2), 6(4)(a)
F2Words in s. 414(2)(b) inserted (with effect in accordance with Sch. 2 para. 25 of the amending Act) by Finance Act 2009 (c. 10), Sch. 2 para. 6
F3Words in s. 414(2)(b) substituted (21.7.2008 with effect in accordance with Sch. 1 para. 65 of the amending Act) by Finance Act 2008 (c. 9), Sch. 1 para. 20
F4Words in s. 414(2)(b) inserted (with effect in accordance with reg. 1(2) of the amending S.I.) by The Scotland Act 2016 (Income Tax Consequential Amendments) Regulations 2017 (S.I. 2017/468), regs. 1(1), 10(2)
F5Words in s. 414(2)(b) substituted (6.4.2018) by The Scottish Rates of Income Tax (Consequential Amendments) Order 2018 (S.I. 2018/459), arts. 1(2), 6(4)(b)