Part 6

Charitable donations relief
Chapter 2

Certain payments to charity

Qualifying payments

Restrictions on associated benefits
197
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—
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 £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.
Sum in s. 197(3) substituted (with effect in accordance with s. 41(5) of the amending Act) by Finance Act 2011 (c. 11), s. 41(2)
S. 197(2)(a)(b) substituted for s. 197(2)(a)-(c) (with effect in accordance with s. 40(4) of the amending Act) by Finance Act 2019 (c. 1), s. 40(3)