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corp tax implication

Dear All

I have a limited company. If my company pays donation to a charity registered in the Republic of Ireland, would I be able to claim it as charges in corporation tax computations?
I got a feeling that the payments to the UK registered charities are eligible to be claimed as charges in corp tax computations.

Your advise would be highly appreciated.

Have a nice Christmas and happy new year.



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29th Dec 2011 20:39

Charitable donation relief
Section 202 of Part 6 (Charitable donation relief) of CTA 2010 defines “charity” as:
(a) a body of persons or trust established for charitable purposes only ...
No mention of UK residence.

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05th Jan 2012 12:13

On the other hand, schedule 6 para 2 of FA'10, does define charity, and does amend s.202 to bring in the definition. 

It includes within the definition charities established within the EU, so your donation to a RoI charity should qualify for gift aid.

Previously the established case was Camille & Henry Dreyfus Foundation Inc v IR Commissioners (1955) 36 TC 126 which meant that foreign charities did not qualify as charities, though there have been some more recent EU cases which overturned that case, for EU charities, and lead to the 2010 legislation.

Hein Persche v Finanzamt Lüdenscheid

Great Ormond Street Hospital, a case in Belgium

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