ACCA ATX ^UK Syllabus A4. Corporation Tax - Qualifying charitable donations - Notes ^{13 / 14}

Tax relief is available for qualifying charitable donations

You can deduct charitable donations from the taxable total profits.

Also note the difference between how qualifying charitable donations are treated between individuals and companies:

Companies deduct these payments, whereas individuals cannot deduct the payments from their income.
A company makes the payment gross, whereas an individual makes the payment net.

Illustration:

Satya Ltd. has the following income and expenses for the year ending 31/03/2025:
Tax adjusted trading profit	£200,000
Property income	£50,000
Interest receivable	£20,000
Chargeable gains	£10,000
Qualifying charitable donation	£15,000

Compute the taxable total profits for the year.

Solution:

Tax adjusted trading profit	£200,000
Property income	£50,000
Interest receivable	£20,000
Chargeable gains	£10,000
Qualifying charitable donations	(£15,000)
Taxable total profits	£265,000