Income Tax Act 2007

416 Meaning of “qualifying donation” U.K.

(1) A gift made to a charity by an individual is a qualifying donation for the purposes of this Chapter if—

(a) conditions A to [F1 F] are met, and

(b) the individual[F2 , or an intermediary representing the individual,] gives the charity[F3 , or an intermediary representing the charity,] a gift aid declaration relating to the gift (see section 428).

[F4 (1A) For the purpose of subsection (1)(b) an intermediary is—

(a) a person authorised by the individual to give a gift aid declaration on behalf of that individual to the charity,

(b) a person authorised by a charity to receive a gift aid declaration on behalf of that charity, or

(c) a person authorised to perform both of the roles described in paragraphs (a) and (b).]

(2) Condition A is that the gift takes the form of a payment of a sum of money.

(3) Condition B is that the payment is not subject to any condition as to repayment.

(4) Condition C is that the payment is not a sum falling within section 713(3) of ITEPA 2003 (payroll deduction scheme).

(5) Condition D is that the payment is not deductible in calculating the individual's income from any source.

(6) Condition E is that the payment is not conditional on, associated with or part of an arrangement involving, the acquisition of property by the charity from the individual or a person connected with the individual.

An acquisition by way of gift is ignored for the purposes of this condition.

[F5 (6A) Condition EA is that the payment is not by way of, and does not amount in substance to, waiver by the individual of entitlement to sums (whether of principal or return) due to the individual from the charity in respect of an amount—

(a) advanced to the charity, and

(b) in respect of which a person, whether or not the individual, has obtained relief under Part 5B (relief for social investments).]

(7) Condition F is that—

(a) there are no benefits associated with the gift, or

(b) there are benefits associated with the gift but the restrictions on those benefits are not breached.

See sections 417 to 421 for provision about benefits associated with gifts.

F6 (8) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Textual Amendments

F1 Letter in s. 416(1)(a) substituted (8.4.2010 with effect in accordance with Sch. 8 para. 8(5) of the amending Act) by Finance Act 2010 (c. 13), Sch. 8 para. 3(2)(a)

F2 Words in s. 416(1)(b) inserted (with effect in accordance with s. 20(4) of the amending Act) by Finance Act 2015 (c. 11), s. 20(2)(a)(i); S.I. 2016/1010, reg. 4

F3 Words in s. 416(1)(b) inserted (with effect in accordance with s. 20(4) of the amending Act) by Finance Act 2015 (c. 11), s. 20(2)(a)(ii); S.I. 2016/1010, reg. 4

F4 S. 416(1A) inserted (with effect in accordance with s. 20(4) of the amending Act) by Finance Act 2015 (c. 11), s. 20(2)(b); S.I. 2016/1010, reg. 4

F5 S. 416(6A) inserted (17.7.2014) by Finance Act 2014 (c. 26), Sch. 11 para. 11

F6 S. 416(8) omitted (8.4.2010 with effect in accordance with Sch. 8 para. 8(5) of the amending Act) by virtue of Finance Act 2010 (c. 13), Sch. 8 para. 3(2)(b)