Part 13Tax avoidance

F1CHAPTER 8Tainted charity donations

Tainted donations

809ZLCertain financial F2assistance to be ignored

(1)

When determining whether a relievable charity donation is a tainted donation, F3financial assistance within subsection F4(2A), (3), (4) or (5) is to be ignored.

F5(2)

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F6(2A)

Financial assistance is within this subsection if it constitutes a payment made by a charity, on arm’s length terms, in respect of—

(a)

work carried out by a person for or on behalf of the charity, or

(b)

expenses incurred by a person in the course of such work.

(3)

F7Financial assistance is within this subsection if (ignoring the tainted donation provisions) it is—

(a)

a benefit associated with a gift which is a qualifying donation for the purposes of Chapter 2 of Part 8 (gift aid), or

(b)

a benefit associated with a payment which is a qualifying payment for the purposes of Chapter 2 of Part 6 of CTA 2010 (charitable donations relief: payments to charity).

(4)

F8Financial assistance is within this subsection if (ignoring the tainted donation provisions)—

(a)

the relievable charity donation is a disposal in respect of which tax relief would be available under Chapter 3 of Part 8 of this Act (gifts of shares, securities and real property to charities etc) or Chapter 3 of Part 6 of CTA 2010 (charitable donations: certain disposals to charity), and

(b)

F9the assistance is a benefit the value of which would be taken into account in determining the relievable amount in respect of the disposal for the purposes of the Chapter in question.

(5)

F10Financial assistance is within this subsection if (ignoring the tainted donation provisions)—

(a)

the relievable charity donation is a gift in respect of which tax relief would be available under section 108 of ITTOIA 2005 or section 105 of CTA 2009 (gifts of trading stock to charities etc), and

(b)

F11the assistance is a benefit attributable to the making of the gift in respect of which an amount would be brought into account under section 109 of ITTOIA 2005 or section 108 of CTA 2009 (receipt of benefits by donor or connected person).

(6)

In this section—

“benefit associated with a gift” has the meaning given by section 417;

“benefit associated with a payment” has the meaning given by section 196 of CTA 2010;

F12“financial assistance” has the same meaning as in section 809ZJ;

“the tainted donation provisions” has the meaning given by section 809ZI(3).