Part 10

Special rules about charitable trusts etc

Other exemptions

Exemption for savings and investment income
532
1
The income mentioned in subsection (2) is not taken into account in calculating total income if—
a
it is income of a charitable trust, or
b
it is required, under an Act, court judgment, charter, trust deed or will, to be applied to charitable purposes only.
2
The income referred to in subsection (1) is—
a
interest,
b
a dividend or other distribution of a UK resident company,
c
a dividend of a non-UK resident company,
d
an annuity payment under a purchased life annuity,
e
profits on the disposal of deeply discounted securities, or
f
income treated for the purposes of regulation 15 of the Unauthorised Unit Trusts (Tax) Regulations 2013 as received by a unit holder from an exempt unauthorised unit trust.
3
Subsection (1) applies only so far as the income falls within, and is dealt with under, Part 4 of ITTOIA 2005 (see section 366 of that Act as to provisions given priority over Part 4).
4
Subsection (1) applies so far as the income is applied to charitable purposes only.
5
In this section—
- “deeply discounted security” has the same meaning as in Chapter 8 of Part 4 of ITTOIA 2005 (profits from deeply discounted securities) (see section 430 of that Act),
- “disposal”, in relation to a deeply discounted security, has the same meaning as in Chapter 8 of Part 4 of that Act (see section 437(1) of that Act),
- “dividend”, in relation to a UK resident company, has the same meaning as in Chapter 3 of Part 4 of that Act (dividends etc from UK resident companies etc) (see section 382(4) of that Act),
- “interest” includes anything treated as interest for the purposes of Chapter 2 of Part 4 of that Act (interest), and
- “purchased life annuity” has the same meaning as in Chapter 7 of Part 4 of that Act (purchased life annuity payments) (see section 423 of that Act).
Words in s. 532(2)(f) substituted (6.4.2014) by The Unauthorised Unit Trusts (Tax) Regulations 2013 (S.I. 2013/2819), regs. 1(3), 37(7) (with reg. 32)