Annex 1: Minor changes in the law made by the Act: Change 30: Gifts of trading stock: gifts “for the purpose of” a charity etc: section 108
This change brings the wording of the relief for a gift to a charity, a registered club or one of the special bodies listed in section 108(5) of this Act into line with that for a gift to an educational establishment.
Section 84 of ICTA allows relief for a gift of an article “for the purposes of a designated educational establishment”. Those words ensure that the relief is available even if the gift is made to a person (such as a local education authority) who becomes the legal owner of the article so that it can be used in a school. In many cases the gift is not “to” the school.
Section 83A of ICTA allows similar relief for a gift “to” a charity. The section allows relief for a gift “for the purposes of” a charity, a registered club or one of the listed bodies.
This change is in taxpayers' favour in principle and may benefit some in practice. But the numbers affected and the amounts involved are likely to be small.