Part 8Other reliefs

Chapter 3Gifts of shares, securities and real property to charities etc

Value of net benefit to charity

437Value of net benefit to charity

(1)

For the purposes of this Chapter the value of the net benefit to a charity is—

(a)

the F1relevant value of the qualifying investment, or

(b)

if the charity is, or becomes, subject to a disposal-related obligation, the F1relevant value of the qualifying investment reduced by the total amount of the disposal-related liabilities of the charity.

F2(1A)

In subsection (1) “relevant value” means—

(a)

where subsection (1B) applies, the lower of the market value and the acquisition value, and

(b)

otherwise, the market value.

(1B)

This subsection applies where—

(a)

the qualifying investment, or anything from which it derives or which it represents (whether in whole or in part and whether directly or indirectly), was acquired by the individual making the disposal within the period of 4 years ending with the day on which the disposal is made,

(b)

the acquisition was made as part of a scheme, and

(c)

the main purpose, or one of the main purposes, of the individual in entering into the scheme was to obtain relief, or an increased amount of relief, under this Chapter.

(1C)

In subsection (1B) “scheme” includes any scheme, arrangement or understanding of any kind, whether or not legally enforceable, involving a single transaction or two or more transactions.

(2)

This section is supplemented by—

  • section 438 (market value of qualifying investments),

  • F3section 438A (acquisition value of qualifying investments),

  • section 439 (meaning of “disposal-related obligation”), and

  • section 440 (meaning and amount of “disposal-related liability”).