Part 11

Charitable companies etc
Chapter 3

Other exemptions

Exemptions

Exemption for certain miscellaneous income
488
1
The income mentioned in subsection (3) is not taken into account in calculating total profits if—
a
it is income of a charitable company, or
b
it is required, under an Act (including an Act of the Scottish Parliament), court judgment, charter, trust deed or will, to be applied to charitable purposes only.
2
Subsection (1) applies so far as the income is applied to charitable purposes only.
3
The income referred to in subsection (1) is—
a
non-trading gains on intangible fixed assets,
b
annual payments charged to tax under Chapter 7 of Part 10 of CTA 2009, and
c
qualifying income from intangible fixed assets.
4
The exemption under subsection (1) requires a claim.
5
In this section—
- “intangible fixed asset” has the same meaning as in Part 8 of CTA 2009 (see section 713 of that Act),
- “non-trading credit” has the meaning given by section 301 of CTA 2009,
- “non-trading gain” has the meaning given by section 751 of CTA 2009,
- “pre-FA 2002 asset” has the meaning given by sections 881 and 892 to 895 of CTA 2009, and
- “qualifying income from intangible fixed assets” means income which—
  1. is in respect of intangible fixed assets which are pre-FA 2002 assets,
  2. is of a kind which, if the intangible fixed assets were not pre-FA 2002 assets, would fall to be brought into account under Chapter 6 of Part 8 of CTA 2009 as non-trading credits, and
  3. does not fall within subsection (3)(a) or (b).