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HMRC internal manual

Business Income Manual

Specific deductions: gifts in kind and payroll giving: designated educational establishments

S110 Income Tax (Trading and Other Income) Act 2005 (ITTOIA 2005); S106 Corporation Tax Act 2009 (CTA 2009); Taxes (Relief for Gifts) (Designated Educational Establishments) Regulations 1992, SI 1992 No 42

The educational establishment must be designated as such by the Government

Tax reliefs encouraging businesses to donate equipment to schools and universities were first introduced in 1991. The primary objective was to increase the provision of information technology and scientific equipment in educational establishments, although relief is also available for a much wider range of gifts.

As discussed in BIM45155 and BIM45165, tax relief is available for gifts of equipment which represent trading stock or plant and machinery of the donor business. The gift may be either new or second-hand. Cash gifts are not included in these provisions as relief is available via Gift Aid for individuals and Qualifying Charitable Donations for companies (see BIM45150).

Relief is only given if the recipient is a designated educational establishment. Specific regulations, referred to at S110 ITTOIA 2005 for unincorporated businesses and S106 CTA 2009 for companies, list these. All UK universities, and in England, schools maintained by the local education authority, grant maintained schools and special schools not maintained by local authorities are designated educational establishments. See Taxes (Relief for Gifts) (Designated Educational Establishments) Regulations 1992, SI 1992 No 42.

The relief also applies to specific institutions in Scotland, Northern Ireland and Wales. It does not, however, apply to youth clubs, youth centres and voluntary youth organisations.