Corporation Tax Act 2010

502 Transactions with substantial donors

(1) For the purposes of this section and sections 504 to 506, “substantial donor transaction” means any of the following—

(a) the sale or letting of property by a charitable company to a substantial donor,

(b) the sale or letting of property to a charitable company by a substantial donor,

(c) the provision of services by a charitable company to a substantial donor,

(d) the provision of services to a charitable company by a substantial donor,

(e) an exchange of property between a charitable company and a substantial donor,

(f) the provision of financial assistance by a charitable company to a substantial donor,

(g) the provision of financial assistance to a charitable company by a substantial donor, and

(h) investment by a charitable company in the business of a substantial donor.

(2) For the purposes of this section and sections 504 to 506, a person is a substantial donor to a charitable company for an accounting period if—

(a) the charitable company receives relievable gifts of at least £25,000 from the person in a period of 12 months in which the accounting period wholly or partly falls, or

(b) the charitable company receives relievable gifts of at least £150,000 from the person in a period of 6 years in which the accounting period wholly or partly falls.

(3) If a person is a substantial donor to a charitable company for an accounting period as a result of subsection (2)(a) or (b), the person is a substantial donor to the charitable company for each of the following 5 accounting periods.

(4) A transaction entered into in an accounting period with a person who is a substantial donor for that period may be a substantial donor transaction, even if it was not until after the transaction was entered into that the person first satisfied the definition of “substantial donor” for the period.