Article Summary
This guidance note provides an overview of the UK corporation tax relief available for qualifying charitable donations made by companies. It explains the definition of a qualifying charitable donation, which includes qualifying cash payments and disposals of certain investments or land to charities. The note outlines the conditions that must be met for a cash payment to a charity to qualify for relief. Key requirements are that the payment must be made to a charity under UK jurisdiction, with no repayment conditions or associated benefits received by the donor company exceeding specified limits. The note also summarises the rules for obtaining relief on disposals of qualifying investments and land to charities. It explains how the amount of relief is calculated, including valuation provisions and rules for clawback of relief if disqualifying events occur post-disposal. Finally, the guidance covers the restriction of relief for tainted donations, where arrangements secure a financial advantage for the donor from the charity. Overall, this is a useful reference for tax professionals advising companies on how to maximise tax relief for charitable giving.