Part 6Charitable donations relief

Chapter 2Certain payments to charity

Qualifying payments

197Restrictions on associated benefits

(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 £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.