Qualifying charitable donations
You'll learn how qualifying charitable donations (QCDs) are treated differently depending on whether they're made to national or local charities, and how this affects both trade profit and taxable total profit calculations.
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In this lesson
- 0:00 Qualifying charitable donations overview
- 0:13 National vs local charity donations
- 0:35 QCDs paid gross and deducted from total profits
- 1:23 Worked example: donations treatment
About this lesson
This video covers the key distinction: donations to local charities reduce trade profit directly, whilst donations to national charities are disallowed in trade profit but deducted from total profits later in the TTP computation. You'll see worked examples showing when to add back donations and why QCDs are always paid gross, with no grossing-up required as there is for individuals using Gift Aid. This is essential knowledge for the TX paper, where correct treatment of charitable donations can significantly impact your corporation tax calculations.
Duration: 2m
Transcript
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