The following Corporation Tax guidance note by Tolley provides comprehensive and up to date tax information covering:
Companies can obtain tax relief for qualifying payments or certain transfers of assets to charity.
For accounting periods ending on or after 1 April 2010, relief for charitable donations is given under the ‘qualifying charitable donations’ provisions in CTA 2010, ss 189–217 (Pt 6). Prior to the tax law rewrite, donations to charity by companies were the last remaining examples of charges on income for companies.
The definition of ‘qualifying charitable donations’ includes:
CTA 2010, s 190
For this purpose, ‘charity’ is defined as:
CTA 2010, s 202
FA 2010, Sch 6 includes a definition of charity for this purpose which, for companies, has effect for accounting periods commencing on or after 1 April 2012.
The definition includes charities based overseas in relevant territories. The relevant territories are EU member states plus Norway and Iceland.
In order to satisfy the definition of charity in FA 2010, Sch 6, a company or trust must meet the following four conditions:
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