Section 108 — Corporation Tax Act 2009: Receipt of benefits by donor or connected person

Receipt of benefits by donor or connected person 108 1 This section applies if a company carrying on a trade makes a gift in relation to which relief is given under—

a section 105, b section 107(2), or c section 63(2) of CAA 2001 (gifts to charities etc of plant or machinery used in the trade), and the company, or a person connected with the company, receives a benefit which is in any way attributable to the making of the gift.

2 This section also applies if—

a relief is given under section 107(3) for costs of transportation, delivery or distribution incurred by a company carrying on a trade, and b the company, or a person connected with the company, receives a benefit which is in any way attributable to the company's incurring of those costs.

3 An amount equal to the value of the benefit—

a is brought into account in calculating the profits of the trade, as a receipt of the trade arising in the accounting period in which the benefit is received, or b if the company has permanently ceased to carry on the trade before the benefit is received, is treated as a post-cessation receipt (see Chapter 15).