Part 6Charitable donations relief
Chapter 2Certain payments to charity
Qualifying payments
197Restrictions on associated benefits
(1)
For the purposes of this Chapter the restrictions on benefits associated with a payment are breached if condition A or B is met.
(2)
Condition A is that the total value of the benefits associated with the payment exceeds the variable limit, which is—
F1(a)
in a case where the amount of the payment is £100 or less, 25% of that amount, and
(b)
in a case where the amount of the payment exceeds £100, the sum of £25 and 5% of the amount of the excess.
(3)
Condition B is that the sum of the following total values is more than F2£2,500—
(a)
the total value of the benefits associated with the payment, and
(b)
the total value of the benefits (if any) associated with each relevant prior payment.
(4)
A relevant prior payment is a payment—
(a)
which has already been made by the company to the charity in the accounting period, and
(b)
which is a qualifying payment.
(5)
This section needs to be read with section 198.