SCHEDULES

SCHEDULE 1Minor and consequential amendments

Part 1Income and Corporation Taxes Act 1988

179

1

Amend section 761 (offshore income gains) as follows.

2

In subsection (6)—

a

for “charity” in the first place where it occurs, substitute “ charitable company ”,

b

for “tax” substitute “ corporation tax ”, and

c

omit the words from “; but” to the end.

3

After that subsection insert—

6A

See section 535 of ITA 2007 for an exemption for income tax purposes for offshore income gains accruing to a charitable trust.

6B

If property held on charitable trusts ceases to be subject to charitable trusts and that property represents directly or indirectly an offshore income gain, the trustees shall be treated as if they had disposed of and immediately reacquired that property for a consideration equal to its market value, any gain (calculated in accordance with Schedule 28) accruing being treated as an offshore income gain not accruing to a charity.

6C

In this section “charity” and “charitable company” have the same meaning as in section 506 and “market value” has the same meaning as in the 1992 Act.