Income Tax Act 2007

527 Exemption from charges under provisions to which section 1016 applies U.K.

(1) Any income or gains of a charitable trust that is or are chargeable to income tax under or by virtue of any provision to which section 1016 applies is not or are not taken into account in calculating total income if conditions A and B are met.

(2) Subsection (1) does not apply in respect of any income or gains chargeable to income tax by virtue of any of—

(a) [F1 section 1086(2) of CTA 2010] (chargeable payments connected with exempt distributions),

F2 (b) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(c) Chapter 9 of Part 4 of ITTOIA 2005 (gains from contracts for life insurance etc),

(d) Chapter 5 of Part 5 of that Act (settlements: amounts treated as income of settlor), [F3 and]

F4 (e) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(f) any other enactment specified in an order made by the Treasury.

(3) Subsection (1) does not apply in respect of any income that is, or gains that are, apart from this section, exempt from income tax chargeable under or by virtue of any provision to which section 1016 applies.

(4) Condition A is that the income is, or the gains are, for a tax year in relation to which the condition specified in section 528 is met.

(5) Condition B is that the income is, or the gains are, applied to the purposes of the charitable trust only.

Textual Amendments

F1 Words in s. 527(2)(a) substituted (with effect in accordance with s. 1184(1) of the amending Act) by Corporation Tax Act 2010 (c. 4), s. 1184(1), Sch. 1 para. 530 (with Sch. 2)

F2 S. 527(2)(b) repealed (with effect in accordance with s. 381(1) of the amending Act) by Taxation (International and Other Provisions) Act 2010 (c. 8), s. 381(1), Sch. 8 para. 81, Sch. 10 Pt. 1 (with Sch. 9 paras. 1-9, 22)

F3 Word in s. 527(2)(d) inserted (with effect in accordance with s. 82 of the amending Act) by Finance Act 2016 (c. 24), s. 79(4)(a) (and also with effect in accordance with Finance (No. 2) Act 2017 (c. 32), s. 39(1)(2))

F4 S. 527(2)(e) omitted (with effect in accordance with s. 82 of the amending Act) by virtue of Finance Act 2016 (c. 24), s. 79(4)(b) (and also with effect in accordance with Finance (No. 2) Act 2017 (c. 32), s. 39(1)(2))

Modifications etc. (not altering text)

C1 Ss. 527, 528 modified (22.7.2020) by Finance Act 2020 (c. 14), Sch. 16 para. 6(5)