AAFM Exam CWM_LEVEL_2 Topic 4 Question 88 Discussion

Section B (2 Mark)

In the year to 31 March 2012, a UK resident company made a UK trading profit of 800,000 and received net overseas income of 26,000 (net of 20% withholding tax). These were the company's only sources of income. The company also paid a qualifying charitable donation of 5,000.

For double tax relief purposes, the charitable donation will be allocated as a deduction from the company's overseas income. True or False?