Qualifying charitable donations and excess management expenses


Published by a UUÂãÁÄÖ±²¥ Tax expert
Practice notes

Qualifying charitable donations and excess management expenses


Published by a UUÂãÁÄÖ±²¥ Tax expert

Practice notes
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All companies within the charge to corporation tax can deduct qualifying charitable donations (QCDs) from their total Profits, after all other deductions have been made (other than Group relief and group relief for carried-forward losses) to reduce total profits to zero. Excess qualifying charitable donations are lost, unless the company is a company with investment business.

Companies with investment business can deduct their management expenses from their total profits. The deduction must be made before any other deductions from total profits.

Excess management expenses can be carried forward to the next accounting period and deducted from total profits of that period or, in the case of losses arising on or after 1 April 2017, surrendered for group relief. Companies with investment business that have excess qualifying charitable donations can carry those excess charitable donations forward as management expenses but cannot surrender them for group relief for carried-forward losses.

For accounting periods beginning on or after 1 April 2024, no relief is available for donations to non-UK charities.

Relief for qualifying charitable donations

If a company makes a

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Jurisdiction(s):
United Kingdom
Related legal acts:
Key definition:
Profits definition
What does Profits mean?

The aggregate of income and chargeable capital gains of a company.

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