Part VII Other property, businesses, investments etc.
Charities and gifts of non-business assets etc.
256 Charities.
1
2
If property held on charitable trusts ceases to be subject to charitable trusts—
a
the trustees shall be treated as if they had disposed of, and immediately reacquired, the property for a consideration equal to its market value, any gain on the disposal being treated as not accruing to a charity, and
b
if and so far as any of that property represents, directly or indirectly, the consideration for the disposal of assets by the trustees, any gain accruing on that disposal shall be treated as not having accrued to a charity,
and an assessment to capital gains tax chargeable by virtue of paragraph (b) above may be made at any time not more than 3 years after the end of the year of assessment in which the property ceases to be subject to charitable trusts.
F33
Subsection (4) below applies if a charitable trust has a non-exempt amount under section 540 of ITA 2007 for a year of assessment.
4
Gains accruing to the charitable trust in the year of assessment are treated as being, and always having been, chargeable gains so far as they are attributed under section 256A to the non-exempt amount.
5
For restrictions on exemptions under Part 10 of ITA 2007 (special rules about charitable trusts etc) see section 539 of that Act.
F46
In subsections (3) and (4) of this section, and in sections 256A and 256B, “charitable trust” has the same meaning as in Part 10 of ITA 2007 (see section 519 of that Act).