BIM45175 | Specific deductions: gifts in kind and payroll giving: relief for gifts of medical supplies and equipment by companies - introduction

S107 Corporation Tax Act 2009

Pharmaceutical companies sometimes take part in programmes aimed at the treatment or eradication of diseases in developing countries by supplying medicines, vaccines, or medical equipment free of charge. Under this provision, no proceeds are brought into trading profits when trading stock is gifted to qualifying organisations.

They do this in co-operation with the public health authorities in the recipient country, and often under the auspices of international aid organisations or the World Heath Organisation. In addition, companies may make occasional donations in response to an emergency appeal from a country affected by natural disaster.

The legislation provides relief for corporate donations of medical supplies and medical equipment for humanitarian purposes anywhere in the world, without restriction to registered charities (see BIM45180).

This is intended as a de-regulatory measure. There is no requirement for the company to make a claim for this relief as it applies automatically. No claim form, or entry on the CT600 return or computations, is required.