Section 418 — Income Tax Act 2007: Restrictions on associated benefits

Restrictions on associated benefits 418 1 For the purposes of section 416(7), the restrictions on benefits associated with a gift are breached if condition A or B is met.

2 Condition A is that the total value of the benefits associated with the gift exceeds the variable limit, which is—

a in a case where the amount of the gift is £100 or less, 25% of that amount, and b in a case where the amount of the gift exceeds £100, the sum of £25 and 5% of the amount of the excess.

3 Condition B is that the sum of—

a the total value of the benefits associated with the gift, and b the total value of the benefits (if any) associated with each relevant prior gift, is more than £2,500 . 4 “ Relevant prior gift ” means a gift—

a which has already been made by the individual to the charity in the tax year, and b which is a qualifying donation.

5 This section needs to be read with sections 419 to 421.