391U.K.In section 44 (which makes provision about expenses of trustees) for subsections (4) and (5) substitute—
“(5A)This section applies if—
(a)in a year of assessment qualifying income arises under a UK settlement,
(b)the qualifying income consists of charitable income and non-charitable income, and
(c)expenses of the trustees are to be used to reduce the charitable income for the purpose of calculating a beneficiary's liability to corporation tax.
(5B)The amount of those expenses which can used for that purpose is limited to the amount allocated to the charitable income.
(5C)The amount of the expenses allocated to the charitable income is determined by apportioning them rateably between the charitable income and the non-charitable income.
(5D)In this section—
“charitable income” means income within section 628(1) or 630(1) of ITTOIA 2005,
“non-charitable income” means income which is not charitable income, and
“qualifying income” and “UK settlement” have the same meaning as in section 628 of ITTOIA 2005.”