There is an opportunity for non-charitable RPs to
eliminate significant corporation tax liabilities.
Non-charitable RPs in a group with charitable RPs can eliminate
significant corporation tax liabilities, without depleting the
assets of the group as a whole, by making a gift aid payment to one
of the charitable entities in the group. Subject to the
counter-effects of the recession, this could be particularly
relevant in the current accounting period if a significant prior
year adjustment arises on the adoption of the SORP 2008. If you are
considering taking this action the following points should be taken
into consideration.
Cash Gifts
A gift aid payment must be made in cash, generally on, or
before, the end of the accounting period for which the tax relief
is sought. The payment must not be part of a circular transaction.
For example, the funds, once received, must not immediately be lent
back to the donor. Also, the donor entity must have
