Finance Act 2002

55 Gifts of medical supplies and equipment

(1) This section applies where, for humanitarian purposes, a company makes a gift from trading stock of medical supplies, or medical equipment, for human use.

(2) For the purposes of the Tax Acts, no amount shall be required to be brought into account as a trading receipt of the company in consequence of the making of the gift.

(3) Any costs of transportation, delivery or distribution incurred by the company in making the gift may be deducted in computing for the purposes of corporation tax the profits of the company’s trade for the accounting period in which the costs are incurred.

(4) In any case where—

(a) relief is given under subsection (2) in respect of the making of a gift and any benefit received in any accounting period by the company or any connected person is in any way attributable to the making of that gift, or

(b) relief is given under subsection (3) and any benefit so received is in any way attributable to the company’s incurring of the costs referred to in that subsection,

the company shall in respect of that period be charged to corporation tax under Case I of Schedule D or, if the company is not chargeable to corporation tax under that Case for that period, under Case VI of Schedule D on an amount equal to the amount of that benefit.

(5) Section 839 of the Taxes Act 1988 (connected persons) applies for the purposes of subsection (4).

(6) The Treasury may by order provide that this section is not to have effect in relation to medical supplies or medical equipment of such descriptions as may be specified in the order.

(7) This section has effect in relation to gifts made on or after 1 April 2002.