Commentary on Sections Overview Chapter 7: Trade profits: gifts to charities etc Section 107: Gifts of medical supplies and equipment
417.This section sets out the main rule for gifts of medical supplies and equipment. It is based on section 55 of FA 2002. It also gives a trading deduction for expenses connected with such gifts.
418.As in section 105, this section overrides the rule in Chapter 10 of this Part of this Act that the market value of a gift should be treated as a trade receipt.
419.Subsection (3) is the special rule that the costs of getting the medical supplies and equipment to the recipient are allowed as a deduction.
420.Subsection (5) is based on section 55(6) of FA 2002. The power of the Treasury to exclude certain medical supplies and equipment has not been used.
421.There is no corresponding rule for income tax. So section 55 of FA 2002 is repealed by Schedule 1 to this Act. See Change 29 in Annex 1.