Section 426 — Income Tax Act 2007: Election by donor: gift treated as made in previous tax year

Election by donor: gift treated as made in previous tax year 426 1 If—

a an individual makes a gift to a charity that is a qualifying donation, and b the condition in subsection (2) is met, the individual may elect to be treated as if the gift had been made in the previous tax year (“year P”).

2 The condition is that the individual's charged amount for year P (see section 427) is at least equal to the increased total of gifts.

3 If an election is made, sections 414 and 423 to 425 have effect in relation to the individual as if the gift were a qualifying donation made by the individual in year P.

4 The increased total of gifts is the sum of—

a the grossed up amount of the gift, and of any gifts that are the subject of the same election or an election made at the same time, b the sum of the grossed up amounts of any gifts to charities made by the individual in year P which—

i are qualifying donations, and ii are not themselves treated as made in the tax year before year P because of an election under this section, and c the sum of the grossed up amounts of any gifts which, as a result of an earlier election under this section, are treated as made in year P.

5 The grossed up amount of the gifts mentioned in paragraphs (a) and (c) of subsection (4) is to be determined as if the gifts were made in year P.

6 An election must be made—

a on or before the date on which the individual delivers a return for year P under section 8 of TMA 1970 (personal return),

and b not later than the normal self-assessment filing date for year P.

7 An election does not affect the position of the recipient of the gift (see section 520 (gifts to charitable trusts: income tax treated as paid) and and sections 471 and 475 of CTA 2010 (charitable companies and eligible bodies: income tax treated as paid etc )). 8 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .