Part 5Miscellaneous income
Chapter 5Settlements: amounts treated as income of settlor or family
Income treated as income of settlor: retained interests
628Exception for gifts to charities
(1)
The rule in section 624(1) does not apply to any qualifying income which arises under a F1UK settlement if—
(a)
it is given by the trustees to a charity in the tax year in which it arises, or
(b)
it is income to which a charity is entitled under the terms of the trust.
(2)
In this section “qualifying income” means—
(a)
income which F2must be accumulated,
(b)
income which is payable at the discretion of the trustees or any other person F3. . .
(c)
income which (before being distributed) is income of any person other than the trustees.
F4(2A)
The cases covered by subsection (2)(b) include cases where the trustees have, or any other person has, any discretion over one or more of the following matters—
(a)
whether, or the extent to which, the income is to be accumulated,
(b)
the persons to whom the income is to be paid, and
(c)
how much of the income is to be paid to any person.
(3)
Subsection (4) applies if in any tax year qualifying income which arises under a F1UK settlement from different sources exceeds the total of—
(a)
the amount of that income which falls within subsection (1), and
(b)
the amount of that income which falls within section 630(1) (comparable exception for income of F5relevant children of settlor).
(4)
The amount of the qualifying income from different sources which falls within subsection (1) above is rateably apportioned between those sources.
(5)
This does not affect the operation of any requirement that the whole, or any specified part, of the income from a particular source is to be given to a charity.
(6)
In this section—
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