Finance Act 2003 – Donations to Approved Bodies

Section 21 amends Section 848A TCA 1997 which is concerned with tax relief for donations to approved bodies including eligible charities, schools, universities and other eligible bodies. With effect from 6 February 2003 an upper limit is placed on the level of tax relief which may be given in respect of donations in a single tax year by an individual to approved bodies with which the individual is associated. Where the aggregate of donations in a single tax year by an individual to approved bodies with which he/she is associated exceeds 10% of his/her total income, the relief is capped at that level.

An individual is regarded as being associated with an approved body if he/she is an employee or member of that approved body or of an associated approved body. Two approved bodies are regarded as being associated with each other if the same person or a similar group of persons has control over or can direct the activities of both approved bodies.