Charitable and other public benefit gifts

Heading: inserted, on 6 January 2010, by section 320 of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).

LD 1 Tax credits for charitable or other public benefit gifts
Amount of credit

(1)

A person who makes a charitable or other public benefit gift in a tax year and who meets the requirements of section 41A of the Tax Administration Act 1994 has a tax credit for the tax year equal to the amount calculated using the formula in subsection (2).

Formula

(2)

The formula referred to in subsection (1) is—

total gifts × 33⅓%.

Definition of item in formula

(3)

In the formula, total gifts means the total amount of all charitable or other public benefit gifts made by the person in the tax year.

Administrative requirements

(4)

Despite subsection (1), the requirements of section 41A are modified if a tax agent or representative applies for a refund under that section on behalf of a person, and—

(a)

the tax agent or representative sees the receipt for the person’s charitable or other public benefit gift; and

(b)

the person retains the receipt for 4 tax years after the tax year to which the claim relates.

Refundable credits

(5)

A credit under this section is a refundable tax credit under section LA 7 (Remaining refundable credits: tax credits for social policy and other initiatives) and is excluded from the application of sections LA 2 to LA 6 (which relate to a person’s income tax liability).

Defined in this Act: amount, apply, charitable or other public benefit gift, refundable tax credit, representative, tax agent, tax credit, tax year

Compare: 2004 No 35 s KC 5

Section LD 1(1): substituted, on 1 April 2008, by section 440(1) of the Taxation (Business Taxation and Remedial Matters) Act 2007 (2007 No 109).

Section LD 1(2): amended, on 1 April 2008, by section 440(2) of the Taxation (Business Taxation and Remedial Matters) Act 2007 (2007 No 109).

Section LD 1(4): amended, on 18 March 2019, by section 229(1) of the Taxation (Annual Rates for 2018–19, Modernising Tax Administration, and Remedial Matters) Act 2019 (2019 No 5).

Section LD 1(4)(a): amended, on 18 March 2019, by section 229(1) of the Taxation (Annual Rates for 2018–19, Modernising Tax Administration, and Remedial Matters) Act 2019 (2019 No 5).

Section LD 1(5): amended (with effect on 1 April 2015), on 24 February 2016, by section 200 of the Taxation (Annual Rates for 2015–16, Research and Development, and Remedial Matters) Act 2016 (2016 No 1).

Section LD 1(5): amended (with effect on 1 April 2008), on 6 October 2009, by section 321 of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).

Section LD 1(5): amended, on 1 April 2008, by section 440(3) of the Taxation (Business Taxation and Remedial Matters) Act 2007 (2007 No 109).

Section LD 1 list of defined terms apply: inserted, on 2 June 2016, by section 74 of the Taxation (Transformation: First Phase Simplification and Other Measures) Act 2016 (2016 No 27).

Section LD 1 list of defined terms representative: inserted, on 18 March 2019, by section 229(2) of the Taxation (Annual Rates for 2018–19, Modernising Tax Administration, and Remedial Matters) Act 2019 (2019 No 5).