Q&As

In respect of a corporate gift from a wholly owned subsidiary to its parent charity is it necessary to record it by formal documentation and are there any other requirements that should be considered?

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Published on LexisPSL on 23/10/2017

The following Corporate Q&A provides comprehensive and up to date legal information covering:

  • In respect of a corporate gift from a wholly owned subsidiary to its parent charity is it necessary to record it by formal documentation and are there any other requirements that should be considered?

The key legislation setting out charitable donations relief for companies is enshrined within Part 6 of the Corporation Tax Act 2010 (CTA 2010). There are five main forms of giving to charity as a company, namely:

  1. donating money

  2. donating equipment and trading stock

  3. donating land, property and shares

  4. seconding employees

  5. sponsoring a charity

Three conditions, A, B and C must be met for a donation to be a Tainted Charity Donations, set out in Schedule 3 of the Finance Act 2011 (FA 2011). If they are 'all' satisfied, any tax relief is lost that would otherwise have been available. The three conditions are:

  1. Condi

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