In this week’s Q&A, Ria Dhillon, apprentice tax advisor at Croner-I, explains the tax implications of charitable donations made in an EU member state
My client is a trading company that usually donates to a charity in France and receives tax relief on the donation. I understand there are to be some changes to the rules going forward in respect of charitable donations and Brexit. Could you please advise on the rule changes?
Charitable donations are not deductible against trading profits as they are not incurred wholly and exclusively for the purposes of the trade (CTA 2009 s54). However, donations to registered charities are deductible against total profits as qualifying charitable donations (CTA 2010 s189).
The definition of charity for this purpose is found in Finance Act 2010 (FA 2010) Sch 6 Para 1.
