Taxes Consolidation Act 1997 section 486

Corporation tax: relief for gifts to First Step

Section 486 provided corporation tax relief for gifts of money made by companies to First Step Limited, a specific company incorporated on 20 September 1990 to support enterprise initiatives.

• Relief was available for cash gifts to First Step Limited made on or before 31 December 2002.
• The net gift was treated as a trading loss in a separate notional trade carried on in the accounting period of the gift.
• Per-company limits applied: gifts had to exceed £500 in the accounting period, with no relief on the excess above £100,000.
• Section 486 was repealed by section 848A(13) with effect from 6 April 2001, when the new general donations regime took over.