Companies can obtain tax relief for qualifying payments or certain transfers of assets to charity.
For accounting periods ending on or after 1 April 2010, relief for charitable donations is given under the 'qualifying charitable donations' provisions in CTA 2010, Part 6. Prior to the tax law rewrite, donations to charity by companies were the last remaining examples of charges on income for companies.
The definition of 'qualifying charitable donations' includes:
- qualifying cash donations to charity
- qualifying disposals of investments and land to charity