Corporation Tax Act 2010 (c. 4)

Part 11 U.K. Charitable companies etc

Chapter 2 U.K. Gifts and other payments

Gifts and other payments to charitable companies U.K.

471 Gifts qualifying for gift aid relief: income tax treated as paid U.K.

(1) This section applies if a gift is made to a charitable company by an individual and the gift is a qualifying donation for the purposes of Chapter 2 of Part 8 of ITA 2007 (gift aid).

(2) The charitable company is treated as receiving, under deduction of income tax at the basic rate for the tax year in which the gift is made, a gift of an amount equal to the grossed up amount of the gift.

(3) References in this section to the grossed up amount of the gift are to the amount of the gift grossed up by reference to the basic rate for the tax year in which the gift is made.

(4) The income tax treated as deducted is treated as income tax paid by the charitable company.