Annex 1: Minor Changes in the Law Change 27: Trading income: gifts of trading stock: gifts “for the purpose of” a charity etc: section 105
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 105(4) of this Act into line with that for a gift to an educational establishment.
It brings the income tax and corporation tax codes back into line.
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 but in this case the gift must be “to” a charity. The section, instead, follows the section 84 model and allows relief for a gift “for the purposes of” a charity, a registered club or one of the listed bodies. This widens the circumstances in which relief is available.
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.