Part 13

Tax avoidance
CHAPTER 8

Tainted charity donations

Tainted donations

Circumstances in which financial advantage deemed to be obtained
809ZK
1
This section applies for the purposes of Condition B.
2
Subsection (3) applies where the arrangements entered into by the linked person (as mentioned in Condition A) involve a transaction to which—
a
that or any other linked person (“X”), and
b
another person (“Y”),
are parties.
3
X obtains a financial advantage from the charity to which the donation is made or a connected charity if—
a
the terms of the transaction are less beneficial to Y or more beneficial to X (or both) than those which might reasonably be expected in a transaction concluded between parties dealing at arm's length, or
b
the transaction is not of a kind which a person dealing at arm's length and in place of Y might reasonably be expected to make.
4
Nothing in this section is intended to limit the circumstances in which a linked person may be regarded as obtaining a financial advantage for the purposes of section 809ZJ.
5
In this section—
- “
Condition A
” and “
Condition B
” have the same meaning as in section 809ZJ;
- “
linked person
” has the meaning given by section 809ZJ(3);
- “
transaction
” includes (for example)—
  1. the sale or letting of property,
  2. the provision of services,
  3. the exchange of property,
  4. the provision of a loan or any other form of financial assistance, and
  5. investment in a business.
Pt. 13 Ch. 8 inserted (19.7.2011) (with effect in accordance with Sch. 3 para. 27 28 of the amending Act) by Finance Act 2011 (c. 11), Sch. 3 para. 1