Income Tax Act 2007 (c. 3)

Part 10 U.K. Special rules about charitable trusts etc

Other exemptions U.K.

536 Exemption for certain miscellaneous income U.K.

(1) The income mentioned in subsection (3) 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) Subsection (1) applies so far as the income is applied to charitable purposes only.

(3) The income referred to in subsection (1) is—

(a) royalties and other income from intellectual property that do not fall within Chapter 2 of Part 2 of ITTOIA 2005 (receipts of a trade etc),

(b) income derived from a relevant telecommunication right that is not income falling within Chapter 2 of Part 2 of ITTOIA 2005 (receipts of a trade etc),

(c) annual payments charged to tax under Chapter 7 of Part 5 of ITTOIA 2005, and

(d) relevant foreign distributions.

(4) In this section—

• “intellectual property” has the same meaning as in section 579 of ITTOIA 2005,

• “relevant foreign distribution” means a distribution of a non-UK resident company which—

  (a)

  is not chargeable to tax under Chapter 4 of Part 4 of ITTOIA 2005 (dividends from non-UK resident companies), but

  (b)

  would be chargeable to tax under Chapter 3 of that Part of that Act (dividends etc from UK resident companies etc) if the company were a UK resident company, and

• “relevant telecommunication right” has the same meaning as in Chapter 10 of Part 2 of that Act (trade profits: certain telecommunications rights) (see section 146 of that Act).