Corporation Tax Act 2010 section 195

Associated benefits

Section 195 disqualifies certain charitable payments from relief where the donor receives benefits in return and those benefits exceed the permitted limits.

• A payment to a charity is disqualified from relief if the donor receives benefits associated with that payment
• The payment is only disqualified if the restrictions on associated benefits (set out in section 197) are breached
• Both conditions must be met: benefits must exist and the permitted limits must be exceeded
• Sections 196 to 198 provide the detailed rules for determining what counts as an associated benefit and what the permitted limits are