Commentary

B2.442 Gifts and loans to charities and educational establishments

Business tax
Business tax | Commentary

B2.442 Gifts and loans to charities and educational establishments

Business tax | Commentary

B2.442 Gifts and loans to charities and educational establishments

Discrete provisions1 are in place which deal with gifts to charities when the profits of a trade are calculated for tax purposes. For income tax purposes these rules apply equally to professions and vocations as they do to trades1.

Gifts of trading stock to charities

When a trader disposes of trading stock other than in the course of a trade, the general rule is that the market value of the stock is taken into account in calculating the profits of the trade2.

However, there is an exception to this rule where the gift is made to a charity or to certain other bodies. In such cases, no amount is brought into account, in calculating the profits of the

To continue reading
View the latest version of this document, as well as thousands of others like it, sign in to TolleyLibrary or register for a free trial