Part 10Special rules about charitable trusts etc
Gifts and other payments
523Payments from other charities: income tax liability and exemption
1
This section applies to payments which—
a
are received by charitable trusts from other charities,
b
are not made for full consideration in money or money's worth,
c
are not charged to income tax, apart from this section, and
d
are not of a description which (on a claim) would be exempt from income tax under any of the exemptions conferred by this Part.
2
This section does not apply to a payment which arises from a source outside the United Kingdom.
3
Income tax is charged under this section on the payments.
4
It is charged on the full amount of the payments arising in the tax year.
5
But a payment is not taken into account in calculating total income so far as it is applied to charitable purposes only.
6
The amount charged under this section in the case of certain payments made by the trustees of a charitable trust in the exercise of a discretion is subject to section 494 (grossing up of discretionary payments from trusts).
7
The trustees of the charitable trust are liable for any tax charged under this section.