Commentary on Sections Overview Overview Section 414: Relief for gifts to charity
1169.This section sets out the relief. It is based on section 25(6) of FA 1990.
1170.Subsection (1) sets out the basic requirement for the relief, which is that the gift should be a “qualifying donation” (see section 416).
1171.Subsection (2)(b) provides that the individual’s basic rate limit is increased by the amount of the gift grossed up at the basic rate of income tax. As a result, an amount of income up to that amount is taxed at either the dividend ordinary rate, the savings rate or the basic rate, rather than at the higher rate or the dividend upper rate.
1172.If “top slicing relief” is claimed on gains under life assurance policies etc (sections 535 to 537 of ITTOIA), relief under this Chapter is ignored for the purposes of the computations required by section 535(1) of ITTOIA. See section 535(7) of ITTOIA, inserted by Schedule 1 to this Act.