Part 10

Special rules about charitable trusts etc

Approved charitable investments and loans

Approved charitable loans
561
1
A loan is an approved charitable loan for the purposes of section 543 (meaning of “non-charitable expenditure”) if it meets conditions A and B.
2
Condition A is that the loan is not made by way of investment.
3
Condition B is that either—
a
the loan is made to another charity for charitable purposes only,
b
it is made to a beneficiary of the charitable trust in the course of carrying out the purposes of the charitable trust,
c
it consists of money placed on current account with a bank otherwise than as part of an arrangement under which a loan is made by a bank to some other person, or
d
an officer of Revenue and Customs is satisfied, on a claim, that the loan is made for the benefit of the charitable trust and not for the avoidance of tax (whether by the charitable trust or by some other person).
4
In this section “bank” has the meaning given by section 991.