Section 107 — Corporation Tax Act 2009: Gifts of medical supplies and equipment

Gifts of medical supplies and equipment 107 1 This section applies if—

a a company carrying on a trade makes a gift from trading stock of medical supplies or medical equipment, b it makes the gift for humanitarian purposes, and c the supplies or equipment are for human use.

2 In calculating the profits of the trade, no amount is required to be brought into account as a receipt in consequence of the gift.

3 In calculating the profits of the trade, a deduction is allowed for any costs of transportation, delivery or distribution incurred by the company in making the gift.

4 The deduction is allowed for the accounting period in which the costs are incurred.

5 The Treasury may by order provide that this section is not to have effect in relation to medical supplies or medical equipment of any description specified in the order.

6 This section needs to be read with section 108 (receipt of benefits by donor or connected person).