PART XIII MISCELLANEOUS SPECIAL PROVISIONS
C1CHAPTER VI OTHER PROVISIONS
Miscellaneous
577 Business entertaining expenses.
F2. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
577AF3 Expenditure involving crime.
F4. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
578 Housing grants.
F5. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
578AF34 Expenditure on car hire
F6. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
578B Expenditure on car hire: supplementary
F7. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
579 Statutory redundancy payments.
F8. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
580 Provisions supplementary to section 579.
F9. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
580AF35 Relief from tax on annual payments under certain insurance policies.
F10. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
580B Meaning of “self-contained” for the purposes of s.580A.
F11. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
580CF36Relief from tax on annual payments under immediate needs annuities
F12. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
581 Borrowing in foreign currency by local authorities and statutory corporations.
F13. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
581AF37Interest on foreign currency securities etc.
F14. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
582 Funding bonds issued in respect of interest on certain debts.
F15. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
582AF16 Designated international organisations: miscellaneous exemptions.
F17. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
583 Inter-American Development Bank.
F18. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
584 Relief for unremittable overseas income
F19. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
585 Relief from tax on delayed remittances.
F20. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
586 Disallowance of deductions for war risk premiums.
F21. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
587 Disallowance of certain payments in respect of war injuries to employees.
F22. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
587AF23 New issues of securities: extra return.
F24. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F38C2C4587BF25Gifts of shares, securities and real property to charities etc
1
2
On a claim made in that behalf to an officer of the Board—
a
the relevant amount shall be allowed—
i
F54. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
ii
F55. . . as a charge on income for the purposes of corporation tax for the accounting period in which the disposal is made; and
b
F57. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
3
F58. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F454
Subject to subsections (5) to (7) below, the relevant amount is an amount equal to—
a
where the disposal is a gift, the value of the net benefit to the charity at, or immediately after, the time when the disposal is made (whichever time gives the lower value);
b
where the disposal is at an undervalue, the amount by which—
i
the value described in paragraph (a) above, exceeds
ii
the amount or value of the consideration for the disposal,
or, if there is no such excess, nil.
5
Where there are one or more benefits received in consequence of making the disposal which are received by F59the company making the disposal or a person connected with F60it, the relevant amount shall be reduced by the value of that benefit or, as the case may be, the aggregate value of those benefits; and section 839 applies for the purposes of this subsection.
6
Where the disposal is a gift, the relevant amount shall be increased by the amount of the incidental costs of making the disposal to the F61company making it.
7
Where the disposal is at an undervalue—
a
to the extent that the consideration for the disposal is less than that for which the disposal is treated as made by virtue of section 257(2)(a) of the 1992 Act, the relevant amount shall be increased by the amount of the incidental costs of making the disposal to the F62company making it; and
b
section 48 of that Act (consideration due after time of disposal) shall apply in relation to the computation of the relevant amount as it applies in relation to the computation of a gain.
8
F74. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F468A
The value of the net benefit to the charity is—
a
the market value of the qualifying investment, unless subsection (8B) below applies;
b
where that subsection applies, that market value reduced by the aggregate amount of the related liabilities of the charity (see subsections (8E) to (8G)).
8B
This subsection applies in any case where—
a
b
one or more of the conditions in subsection (8C) below is satisfied.
8C
For the purposes of subsection (8B) above—
a
condition 1 is that, taking into account all the circumstances (including, in particular, the difference in the value of the net benefit to the charity if subsection (8B) applies and if it does not), it is reasonable to suppose that the disposal of the qualifying investment to the charity would not have been made in the absence of the obligation;
b
condition 2 is that the obligation (whether in whole or in part) relates to, is framed by reference to, or is conditional on the charity receiving, the qualifying investment or a related investment (see subsection (8D)).
8D
In subsection (8C) above “related investment” means any of the following—
a
any asset of the same class or description as the qualifying investment (irrespective of size, quantity or amount);
b
any asset derived from, or representing, the qualifying investment whether in whole or in part and whether directly or indirectly;
c
any asset from which the qualifying investment is derived, or which the qualifying investment represents, whether in whole or in part and whether directly or indirectly.
8E
For the purposes of this section, the liabilities which are related liabilities in the case of any qualifying investment are the liabilities of the charity under each of the obligations that fall within subsection (8B) above (as read with subsection (8C) above) in relation to that investment.
8F
Where an obligation is contingent and the contingency occurs, the amount to be brought into account for the purposes of this section at any time in respect of the liability, so far as contingent, under the obligation is the amount or value of the liability actually incurred in consequence of the occurrence of the contingency.
8G
Where an obligation is contingent and the contingency does not occur, the amount to be brought into account for the purposes of this section at any time in respect of the liability, so far as contingent, is nil.
9
In this section—
F65“authorised unit trust” has the meaning given by section 468;
“charity” has the same meaning as in section 506 and includes
- a
F66the Trustees of the National Heritage Memorial Fund;
- b
the Historic Buildings and Monuments Commission for England; and
- c
the National Endowment for Science, Technology and the Arts;
- a
“the incidental costs of making the disposal to the F67company making it” shall be construed in accordance with section 38(2) of the 1992 Act;
F75. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F47“obligation” includes a reference to each of the following—
- a
any scheme, arrangement or understanding of any kind, whether or not legally enforceable;
- b
a series of obligations (whether or not between the same parties);
- a
F48“offshore fund” has the same meaning as in Chapter 5 of Part 17;
F68“open-ended investment company” is to be read in accordance with section 468A(2) to (4);
“qualifying investment” means any of the following—
F49“related liabilities” shall be construed in accordance with subsection (8E) above;
F50“value of the net benefit to the charity” shall be construed in accordance with subsection (8A) above.
F779ZA
In paragraph (a) of the definition of “qualifying investment” in subsection (9) above, “designated” means designated by an order made by the Commissioners for Her Majesty's Revenue and Customs for the purposes of that paragraph.
9ZB
An order under subsection (9ZA) above may—
a
designate a market by name or by reference to any class or description of market, and
b
vary or revoke a previous order under that subsection.
F439A
In this section a “qualifying interest in land” means—
a
a freehold interest in land, or
b
a leasehold interest in land which is a term of years absolute,
where the land in question is in the United Kingdom.
This subsection is subject to subsections (9B) to (9D) below.
9B
Where a F69company makes a disposal to a charity of—
a
the whole of F70its beneficial interest in such freehold or leasehold interest in land as is described in subsection (9A)(a) or (b) above, and
b
any easement, servitude, right or privilege so far as benefiting that land,
9C
Where F71a company which has a freehold or leasehold interest in land in the United Kingdom grants a lease for a term of years absolute (or, in the case of land in Scotland, grants a lease) to a charity of the whole or part of that land, the grant of that lease is to be regarded for the purposes of this section as a disposal by F72the company of the whole of the beneficial interest in the leasehold interest so granted.
9D
For the purposes of subsection (9A) above, an agreement to acquire a freehold interest and an agreement for a lease are not qualifying interests in land.
9E
In the application of this section to Scotland—
C3a
references to a freehold interest in land are references to the interest of the owner,
b
references to a leasehold interest in land which is a term of years absolute are references to a tenant’s right over or interest in a property subject to a lease, and
c
references to an agreement for a lease do not include references to missives of let that constitute an actual lease.
10
Subject to subsection (11) below, the market value of any qualifying investment shall be determined for the purposes of this section as for the purposes of the 1992 Act.
F5110A
Section 839 (connected persons) applies for the purposes of this section.
11
In the case of an interest in an offshore fund for which there are separate published buying and selling prices, section 272(5) of the 1992 Act (meaning of “market value” in relation to rights of unit holders in a unit trust scheme) shall apply with any necessary modifications for determining the market value of the interest for the purposes of this section.
F4412
This section is supplemented by F73sections 587BA and 587C below.
F39587BAQualifying interests in land held jointly
1
This section applies for the purposes of section 587B where a qualifying investment is a qualifying interest in land.
2
Where two or more persons (“the owners”)—
a
are jointly beneficially entitled to the qualifying interest in land, or
b
are, taken together, beneficially entitled in common to the qualifying interest in land,
relief under section 587B is available if at least one of the owners is a qualifying company and all the owners dispose of the whole of their beneficial interests in the qualifying interest in land to the charity.
3
Subsection (4) applies if one or more of the owners is not a company.
4
For the purpose of determining whether the owners' beneficial interests are disposed of as mentioned in subsection (2), section 587B(9B) and (9C) applies as if references to a company included a reference to a person who is not a company.
5
Relief under section 587B is available to each of the owners which is a qualifying company.
6
If one or more of the owners is an individual—
a
the relevant amount is taken to be the relievable amount calculated for the purposes of Chapter 3 of Part 8 of ITA 2007, and
b
the amount of relief under section 587B to be given to a qualifying company is such share of the relievable amount as is allocated to the company by the agreement mentioned in section 442(5) of ITA 2007.
7
Subsections (8) to (12) apply if none of the owners is an individual.
8
The amount of relief under section 587B to be given to a qualifying company is such share of the relevant amount as is allocated to the company by an agreement made between those owners which are qualifying companies.
9
Calculate the relevant amount as if—
a
the owners were a single qualifying company, and
b
the disposals of the owners' beneficial interests were a single disposal by that single company of the whole of the beneficial interest in the qualifying interest in land.
10
In particular, for the purposes of section 587B(7) calculate the consideration for which the disposal is made by virtue of section 257(2)(a) of the 1992 Act by—
a
calculating, for each owner, the consideration for which the disposal of the owner's beneficial interest is so made, and
b
adding together all the consideration calculated under paragraph (a).
11
If one or more of the owners is not a qualifying company, in calculating the relevant amount make just and reasonable adjustments to reduce the relevant amount to reflect the fact that relief under section 587B is not available to that owner or to those owners.
12
F88. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
13
A company is a qualifying company if—
a
it is not itself a charity, F89. . .
b
F89. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F40587C Supplementary provision for gifts of real property
1
This section applies for the purposes of section 587B where a qualifying investment is a qualifying interest in land.
2
F79. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
3
F79. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
4
5
The certificate must—
a
specify the description of the qualifying interest in land which is the subject of the disposal,
b
specify the date of the disposal, and
c
contain a statement that the charity has acquired the qualifying interest in land.
6
If, in the case of a disposal of a qualifying interest in land, a disqualifying event occurs at any time in the relevant period, the F82following shall be treated as never having been entitled to relief under section 587B in respect of the disposal—
F83a
in a case to which section 587BA does not apply, the company which made the disposal, and
b
in a case to which section 587BA applies, each qualifying company which is an owner.
7
All such assessments and adjustments of assessments are to be made as are necessary to give effect to subsection (6) above.
8
For the purposes of subsection (6) above a disqualifying event occurs if F84a person mentioned in subsection (8A)—
a
becomes entitled to an interest or right in relation to all or part of the land to which the disposal relates, or
b
becomes party to an arrangement under which he enjoys some right in relation to all or part of that land,
otherwise than for full consideration in money or money’s worth.
F858A
The persons are—
a
in a case to which section 587BA does not apply—
i
the company which made the disposal, or
ii
a person connected with that company, and
b
in a case to which section 587BA applies—
i
a person who is an owner, or
ii
a person connected with such a person.
9
A disqualifying event does not occur, for the purposes of subsection (6) above, if a person becomes entitled to an interest or right as mentioned in subsection (8)(a) above as a result of a disposition of property on death, whether the disposition is effected by will, under the law relating to intestacy or otherwise.
10
For the purposes of subsection (6) above the relevant period is the period beginning with the date of the disposal of the qualifying interest in land and ending with—
a
F86. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
b
F87. . . the sixth anniversary of the end of the accounting period in which the disposal was made.
11
Section 839 (connected persons) applies for the purposes of this section.
12
This section shall be construed as one with section 587B.
588 Training courses for employees.
F26. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
589 Qualifying courses of training etc.
F27. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
589AF28 Counselling services for employees.
F29. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F30589B Qualifying counselling services etc.
1
F31. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
2
F31. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
3
F31. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F324
F31. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
4A
F31. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
5
F33. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Pt 13 Ch. 6: ss. 573, 575 and 576 transposed to Pt. 13 Ch. 5A (6.4.2007 with effect in accordance with s. 1034(1) of the affecting Act) by Income Tax Act 2007 (c. 3), Sch. 1 paras. 117(3), 119(7), 120(7) (with Sch. 2)