Section 107 | Gifts of medical supplies and equipment

(1)This section applies if—

(a)a company carrying on a trade makes a gift from trading stock of medical supplies or medical equipment,

(b)it makes the gift for humanitarian purposes, and

(c)the supplies or equipment are for human use.

(2)In calculating the profits of the trade, no amount is required to be brought into account as a receipt in consequence of the gift.

(3)In calculating the profits of the trade, a deduction is allowed for any costs of transportation, delivery or distribution incurred by the company in making the gift.

(4)The deduction is allowed for the accounting period in which the costs are incurred.

(5)The Treasury may by order provide that this section is not to have effect in relation to medical supplies or medical equipment of any description specified in the order.

(6)This section needs to be read with section 108 (receipt of benefits by donor or connected person).