Section 809ZMA — Income Tax Act 2007: Clawback of income tax relief where donation becomes tainted in later tax year

Clawback of income tax relief where donation becomes tainted in later tax year 809ZMA 1 This section applies where—

a a person makes a relievable charity donation in a tax year (“the donation year”),

b the donation becomes a tainted donation in a later tax year ( “the tainting year” ),

and c if the donation had become a tainted donation in the donation year, the person’s liability to income tax for the donation year would have been greater than it in fact was for that year.

2 Income tax is charged under this section, for the tainting year, of an amount equal to the difference between—

a the amount of income tax for which the person who made the donation would have been liable for the donation year had the donation become a tainted donation in that year, and b the amount of income tax for which that person was in fact liable for the donation year.

3 The person liable for tax charged under this section is the person who made the donation.

4 Section 101 of FA 2009 (late payment interest) has effect in relation to tax charged under this section as though the tax had become due and payable on 1 February in the tax year following the donation year.