Section 108 Gifts of trading stock to charities etc.C1

United Kingdom

(1)

This section applies if a person carrying on a trade (“the donor”) gives an article for the purposes of—

(a)

a charity, a registered club or a body listed in subsection (4), or

(b)

a designated educational establishment (see section 110),

and the article is one manufactured, or of a class or description sold, by the donor in the course of the trade.

(2)

In calculating the profits of the trade, no amount is required to be brought into account as a receipt in consequence of the disposal of the article.

(3)

In this section “registered club” has the meaning given by F1section 658 of CTA 2010 (community amateur sports clubs).

(4)

The bodies referred to in subsection (1)(a) are—

(a)

the Trustees of the National Heritage Memorial Fund,

(b)

the Historic Buildings and Monuments Commission for England,

(c)

F2. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(d)

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F3(e)

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(5)

This section F4—

(a)

needs to be read with section 109 (receipt by donor or connected person of benefit attributable to certain gifts)F5, and

(b)

is subject to F6sections 809ZM and 809ZMB of ITA 2007 (removal of income tax relief in respect of tainted charity donations etc).

Annotations

F1: Words in s. 108(3) substituted (1.4.2010) (with effect in accordance with s. 1184(1) of the amending Act) by Corporation Tax Act 2010 (c. 4), s. 1184(1), Sch. 1 para. 446 (with Sch. 2)
F2: S. 108(4)(c)(d) repealed (6.4.2007 with effect as noted in s. 1034(1) of the amending Act) by Income Tax Act 2007 (c. 3), ss. 1027, 1031, 1034, Sch. 1 para. 500, Sch. 3 Pt. 1 (with transitional provisions and savings in Sch. 2)
F3: S. 108(4)(e) omitted (1.4.2012) by virtue of The Public Bodies (Abolition of the National Endowment for Science, Technology and the Arts) Order 2012 (S.I. 2012/964), arts. 1(2), 3(1), Sch.
F4: S. 108(5)(a): words in s. 108(5) renumbered as s. 108(5)(a) (with effect in accordance with Sch. 3 para. 27 of the amending Act) by Finance Act 2011 (c. 11), Sch. 3 para. 6(a)
F5: S. 108(5)(b) and word inserted (with effect in accordance with Sch. 3 para. 27 of the amending Act) by Finance Act 2011 (c. 11), Sch. 3 para. 6(b)
F6: Words in s. 108(5)(b) substituted (with effect in accordance with s. 56(8) of the amending Act) by Finance Act 2026 (c. 11), s. 56(8), Sch. 9 para. 22

C1: S. 108 excluded (6.4.2007 with effect as stated in s. 1034(1) of the amending Act) by Income Tax Act 2007 (c. 3), ss. 445(1), 1034 (with transitional provisions and savings in Sch. 2)