UK Court Upholds Firm’s Tax Relief for Charity Donations (1)

A UK property investment company rightly claimed tax relief on charitable donations, which weren’t part of a scheme to fund a share purchase, a UK court ruled.

The First-tier Tribunal said in its Monday decision that the donations made by Anston Investments Ltd. to its parent company were qualifying charitable donations, upholding the company’s appeal against more than £874,000 ($1.15 million) in tax assessments from His Majesty’s Revenue and Customs.

For many years, Anston Investments had donated its taxable profits to Clydpride Ltd., a UK registered charity, to reduce its corporation tax liability to zero and to fund the ...