Corporation Tax Act 2010

197 Restrictions on associated benefits U.K.

(1) For the purposes of this Chapter the restrictions on benefits associated with a payment are breached if condition A or B is met.

(2) Condition A is that the total value of the benefits associated with the payment exceeds the variable limit, which is—

(a) 25% of the amount of the payment, if the amount of the payment is £100 or less,

(b) £25, if the amount of the payment is more than £100 but not more than £1,000,

(c) 5% of the amount of the payment, if the amount of the payment is more than £1,000.

(3) Condition B is that the sum of the following total values is more than [F1 £2,500]—

(a) the total value of the benefits associated with the payment, and

(b) the total value of the benefits (if any) associated with each relevant prior payment.

(4) A relevant prior payment is a payment—

(a) which has already been made by the company to the charity in the accounting period, and

(b) which is a qualifying payment.

(5) This section needs to be read with section 198.

Textual Amendments

F1 Sum in s. 197(3) substituted (with effect in accordance with s. 41(5) of the amending Act) by Finance Act 2011 (c. 11), s. 41(2)