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The Qualifying donations relieved template applies the relief for qualifying charitable donations against the company's total profits. It takes the amount of donations paid in the period (from the Qualifying charitable donations template) and deducts it, limited to the amount that reduces taxable total profits to nil.

Table of contents 

When should I use this template?

Use this template where the company has qualifying charitable donations to relieve. It is the step that actually gives the relief; the donations themselves are entered in the Qualifying charitable donations (QCDs) template.

Before you start

Complete the Qualifying charitable donations (QCDs) template first, so the amount paid is known, and complete the income templates, so total profits are known. This template reads from both.

Background: how the relief is given

Qualifying charitable donations are deducted from total profits after most other reliefs. Crucially, the deduction is limited to the amount that reduces taxable total profits to nil — it cannot create or increase a loss, and any excess is not carried forward (it is lost). The template applies this cap.

How the analysis works

The template takes the qualifying donations paid and deducts them against total profits, applying the cap so that profits are not reduced below nil. Built-in checks confirm the amounts have the correct sign, and a long period of account is dealt with by accounting period.

What flows through to the rest of Corporation Tax?

The relief given reduces taxable total profits in the Taxable income computation. Any donations that cannot be relieved because of the cap are not carried forward.

Where the data comes from

  • The amount of donations paid comes from the Qualifying charitable donations (QCDs) template.
  • The profits it is set against come from the current-period computation.
  • The relief given feeds the Taxable income computation (capped so that profits are not reduced below nil).

Frequently asked questions

Where does the donation figure come from?

From the Qualifying charitable donations (QCDs) template — the amount paid in the period.

Why is my relief capped?

The deduction cannot reduce taxable total profits below nil, so where profits are insufficient the relief is capped and the excess is lost.