Section 197 | Restrictions on associated benefits

(1)For the purposes of this Chapter the restrictions on benefits associated with a payment are breached if condition A or B is met.

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

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

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

(3)Condition B is that the sum of the following total values is more than £2,500—^F2

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

(b)the total value of the benefits (if any) associated with each relevant prior payment.

(4)A relevant prior payment is a payment—

(a)which has already been made by the company to the charity in the accounting period, and

(b)which is a qualifying payment.

(5)This section needs to be read with section 198.