Annex 1: Minor changes in the law made by the Act: Change 29: Gifts of trading stock: drop the need for the gift to be plant and machinery in the hands of the educational establishment: section 108
This change removes the requirement that a gift to an educational establishment should qualify as plant and machinery in the hands of the educational establishment.
Section 84(1) of ICTA gives relief for the gift of an article that “qualifies as plant or machinery”. Subsection (2) sets out what those words mean. The similar relief for gifts of trading stock to charities does not have the same condition. So there is no need for the gift to qualify as plant or machinery in the hands of an educational establishment.
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.