Section 418 | Restrictions on associated benefits

(1)For the purposes of section 416(7), the restrictions on benefits associated with a gift are breached if condition A or B is met.

(2)Condition A is that the total value of the benefits associated with the gift exceeds the variable limit, which is—

(a)in a case where the amount of the gift is £100 or less, 25% of that amount, and^F1

(b)in a case where the amount of the gift exceeds £100, the sum of £25 and 5% of the amount of the excess.^F1

(3)Condition B is that the sum of—^F2

(a)the total value of the benefits associated with the gift, and

(b)the total value of the benefits (if any) associated with each relevant prior gift,

is more than £2,500.

(4)“Relevant prior gift” means a gift—

(a)which has already been made by the individual to the charity in the tax year, and

(b)which is a qualifying donation.

(5)This section needs to be read with sections 419 to 421.