Part 8Other reliefs

Chapter 2Gift aid

Restrictions on associated benefits

418Restrictions on associated benefits

1

For the purposes of section 416(7), the restrictions on benefits associated with a gift are breached if condition A or B is met.

2

Condition A is that the total value of the benefits associated with the gift exceeds the variable limit, which is—

F2a

in a case where the amount of the gift is £100 or less, 25% of that amount, and

b

in a case where the amount of the gift exceeds £100, the sum of £25 and 5% of the amount of the excess.

3

Condition B is that the sum of—

a

the total value of the benefits associated with the gift, and

b

the total value of the benefits (if any) associated with each relevant prior gift,

is more than F1£2,500.

4

Relevant prior gift” means a gift—

a

which has already been made by the individual to the charity in the tax year, and

b

which is a qualifying donation.

5

This section needs to be read with sections 419 to 421.