Income Tax Act 2007

563 Rules for attributing excess expenditure to earlier years

(1) The rules in this section apply for attributing a charitable trust’s excess expenditure for a tax year to earlier tax years under section 562.

(2) The excess expenditure for a tax year may be attributed to an earlier tax year if—

(a) the earlier tax year ends not more than 6 years before the end of the tax year in question, and

(b) the charitable trust’s available income and gains for the earlier tax year exceed its non-charitable expenditure for the earlier tax year.

(3) If the conditions in subsection (2) are met in the case of more than one earlier tax year, the excess expenditure is to be attributed to a later tax year in priority to an earlier tax year.

(4) The amount of excess expenditure that is to be attributed to an earlier tax year must not be greater than the amount by which the charitable trust’s available income and gains for the earlier tax year exceed its non-charitable expenditure for the earlier tax year.

(5) For the purposes of subsections (2)(b) and (4) the charitable trust’s non-charitable expenditure for the earlier tax year includes any excess expenditure attributed to the earlier tax year as a result of a previous operation of this section, but ignores the attribution in question.