Part 13 U.K. Tax avoidance

[F1 CHAPTER 8 U.K. Tainted charity donations

Textual Amendments

F1 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

Removal of reliefs and imposition of charge to tax U.K.

[F2 809ZMA Clawback of income tax relief where donation becomes tainted in later tax year U.K.

(1) This section applies where—

(a) a person makes a relievable charity donation in a tax year (“the donation year”),

(b) the donation becomes a tainted donation in a later tax year (“the tainting year”), and

(c) if the donation had become a tainted donation in the donation year, the person’s liability to income tax for the donation year would have been greater than it in fact was for that year.

(2) Income tax is charged under this section, for the tainting year, of an amount equal to the difference between—

(a) the amount of income tax for which the person who made the donation would have been liable for the donation year had the donation become a tainted donation in that year, and

(b) the amount of income tax for which that person was in fact liable for the donation year.

(3) The person liable for tax charged under this section is the person who made the donation.

(4) Section 101 of FA 2009 (late payment interest) has effect in relation to tax charged under this section as though the tax had become due and payable on 1 February in the tax year following the donation year.]]

Textual Amendments

F2 Ss. 809ZMA, 809ZMB inserted (with effect in accordance with s. 56(8) of the amending Act) by Finance Act 2026 (c. 11), s. 56(8), Sch. 9 para. 8 (with s. 56(9)(10))