Section 661D — Corporation Tax Act 2010: Tax treatment of gifts qualifying for gift aid relief

Tax treatment of gifts qualifying for gift aid relief 661D 1 This section applies if a gift is made to a registered club by an individual and the gift is a qualifying donation for the purposes of Chapter 2 of Part 8 of ITA 2007 (gift aid).

2 The club is treated as receiving, under deduction of income tax at the basic rate for the tax year in which the gift is made, a gift of an amount equal to the grossed up amount of the gift.

3 The income tax treated as deducted is treated as income tax paid by the club.

4 The grossed up amount of the gift is treated as an amount in respect of which the club is chargeable to corporation tax, under the charge to corporation tax on income. But this is subject to section 664 (exemption for interest and gift aid income).

5 References in this section to the grossed up amount of the gift are to the amount of the gift grossed up by reference to the basic rate for the tax year in which the gift is made.