Section 23 | Gifts to charities or registered clubs.

From legislation.gov.uk

(1)Transfers of value are exempt to the extent that the values transferred by them are attributable to property which is given to charities or registered clubs.^F1

(2)Subsection (1) above shall not apply in relation to property if the testamentary or other disposition by which it is given—

(a)takes effect on the termination after the transfer of value of any interest or period, or

(b)depends on a condition which is not satisfied within twelve months after the transfer, or

(c)is defeasible;

and for this purpose any disposition which has not been defeated at a time twelve months after the transfer of value and is not defeasible after that time shall be treated as not being defeasible (whether or not it was capable of being defeated before that time).

(3)Subsection (1) above shall not apply in relation to property which is an interest in other property if—

(a)that interest is less than the donor’s, or

(b)the property is given for a limited period;

and for this purpose any question whether an interest is less than the donor’s shall be decided as at a time twelve months after the transfer of value.

(4)Subsection (1) above shall not apply in relation to any property if—

(a)the property is land or a building and is given subject to an interest reserved or created by the donor which entitled him, his spouse or civil partner or a person connected with him to possession of, or to occupy, the whole or any part of the land or building rent-free or at a rent less than might be expected to be obtained in a transaction at arm’s length between persons not connected with each other, or^F2

(b)the property is not land or a building and is given subject to an interest reserved or created by the donor other than—

(i)an interest created by him for full consideration in money or money’s worth, or

(ii)an interest which does not substantially affect the enjoyment of the property by the person or body to whom it is given;

and for this purpose any question whether property is given subject to an interest shall be decided as at a time twelve months after the transfer of value.

(5)In the case of any property which is given to charities, subsection (1) above shall not apply in relation to the property if it or any part of it may become applicable for purposes other than charitable purposes or those of a body mentioned in section 24, or 25 below or, where it is land, of a body mentioned in section 24A below.^F3F4F5F6

(5A)In the case of any property which is given to a registered club, subsection (1) above shall not apply in relation to the property if it or any part of it may become applicable for purposes other than—^F7

(a)the purposes of the club in question;^F7

(b)the purposes of another registered club;^F7

(c)the purposes of the governing body of an eligible sport for the purposes of which the club in question exists; or^F7

(d)charitable purposes.^F7

(5B)To the extent that the value transferred by a transfer of value made on the death of a member of a pension scheme is attributable to the member’s notional pension property—^F8

(a)the value transferred is treated for the purposes of this section as also attributable to any property that on the death of the member is given under the scheme to charities or registered clubs, and^F8

(b)subsection (2) does not apply in relation to the transfer of value.^F8

(6)For the purposes of this section—^F9

(a)property is given to charities if it becomes the property of charities ...; and^F9F10

(b)property is given to registered clubs if it becomes the property of registered clubs ...;^F9F11

and “donor” shall be construed accordingly.

(7)For the purposes of this section “registered club” and “eligible sport” have the same meaning as in Chapter 9 of Part 13 of the Corporation Tax Act 2010.^F9

Notes

F1
Words in s. 23(1) inserted (1.4.2010 with effect as mentioned in s. 1184(1) of the amending Act) by Corporation Tax Act 2010 (c. 4), ss. 1177, 1184, Sch. 1 para. 189(2) (with Sch. 2)
F2
Words in s. 23(4)(a) inserted (5.12.2005) by The Tax and Civil Partnership Regulations 2005 (S.I. 2005/3229), regs. 1(1), 9
F3
Words in s. 23(5) inserted (1.4.2010 with effect as mentioned in s. 1184(1) of the amending Act) by Corporation Tax Act 2010 (c. 4), ss. 1177, 1184, Sch. 1 para. 189(3)(a) (with Sch. 2)
F4
Word in s. 23(5) inserted (1.4.2010 with effect as mentioned in s. 1184(1) of the amending Act) by Corporation Tax Act 2010 (c. 4), ss. 1177, 1184, Sch. 1 para. 189(3)(b) (with Sch. 2)
F5
Words in s. 23(5) substituted (31.7.1998 with effect in relation to any transfer of value made on or after 17.3.1998) by 1998 c. 36, s. 143(2)(a)
F6
Finance Act 1989 s. 171(2),in relation to transfers of value made on or after 14March 1989.
F7
S. 23(5A) inserted (1.4.2010 with effect as mentioned in s. 1184(1) of the amending Act) by Corporation Tax Act 2010 (c. 4), ss. 1177, 1184, Sch. 1 para. 189(4) (with Sch. 2)
F8
S. 23(5B) inserted (with application in accordance with s. 71 of the amending Act) by Finance Act 2026 (c. 11), ss. 69(4), 71
F9
S. 23(6)(7) substituted (1.4.2010 with effect as mentioned in s. 1184(1) of the amending Act) for s. 23(6) by Corporation Tax Act 2010 (c. 4), ss. 1177, 1184, Sch. 1 para. 189(5) (with Sch. 2)
F10
Words in s. 23(6)(a) omitted (with effect in accordance with s. 78(5) of the amending Act) by virtue of Finance Act 2026 (c. 11), s. 78(2)(a)(5) (with s. 79)
F11
Words in s. 23(6)(b) omitted (with effect in accordance with s. 78(5) of the amending Act) by virtue of Finance Act 2026 (c. 11), s. 78(2)(b)(5) (with s. 79)