Part 11

Charitable companies etc
Chapter 2

Gifts and other payments

Gifts and other payments to charitable companies

Payments from other charities: corporation tax liability and exemption
474
1
Subsection (2) applies if a charitable company receives from another charity a payment which—
a
is not made for full consideration in money or money's worth,
b
is not chargeable to corporation tax apart from this section, and
c
is not of a description which (on a claim) would be exempt from corporation tax under any of the exemptions conferred by this Part.
2
The payment is treated as an amount in respect of which the charitable company is chargeable to corporation tax, under the charge to corporation tax on income.
3
But the payment is not taken into account in calculating total profits so far as it is applied to charitable purposes only.
4
In the case of a payment to which section 494 of ITA 2007 (discretionary payments by trustees) applies, the references in subsections (2) and (3) to the payment are to be read as references to the grossed up amount of the discretionary payment within the meaning of that section.
5
The exemption under subsection (3) requires a claim.