Section 197: Restrictions on associated benefits
765.This section sets out two conditions which, if either is met, mean that the restrictions on benefits associated with a payment to a charity are breached. It is based on section 339(3B), (3C), (3D) and (3DA) of ICTA.
766.The two conditions are:
a stepped scale, depending on the amount of each payment (Condition A) – the “benefit per payment” test; and
an overall monetary limit on benefits associated with the total of any payments to a single charity in the course of an accounting period – the “benefit per accounting period” test (Condition B). This is unrelated to the size of any particular payment.
767.Both these restrictions apply to any benefit “associated with” a payment.