# Corporation Tax Act 2010, Section 197: Restrictions on associated benefits

Extent: E+W+S+N.I.

(1) For the purposes of this Chapter the restrictions on benefits associated with a payment are breached if condition A or B is met.
(2) Condition A is that the total value of the benefits associated with the payment exceeds the variable limit, which is—
(a) in a case where the amount of the payment is £100 or less, 25% of that amount, and
(b) in a case where the amount of the payment exceeds £100, the sum of £25 and 5% of the amount of the excess.
(3) Condition B is that the sum of the following total values is more than £2,500—
(a) the total value of the benefits associated with the payment, and
(b) the total value of the benefits (if any) associated with each relevant prior payment.
(4) A relevant prior payment is a payment—
(a) which has already been made by the company to the charity in the accounting period, and
(b) which is a qualifying payment.
(5) This section needs to be read with section 198.

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Source: https://www.legislation.gov.uk/ukpga/2010/4/section/197 (the official version)
Page: https://openlegislation.uk/corporation-tax-act-2010/section-197
Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives.