Annex 1: Minor Changes in the Law Change 26: Trading income: gifts of trading stock: drop the need for the gift to be plant and machinery in the hands of the educational establishment: section 105
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.
It brings the income tax and corporation tax codes back into line.
Section 84(1) of ICTA (gifts to educational establishments) 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 in section 83A of ICTA for gifts of trading stock to charities does not have the same condition. The change brings the relief for gifts to educational establishments into line with the relief for gifts to charities. There is no longer the need for a gift to qualify as plant and machinery before relief can be given.
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.