Income Tax Act 2007

527Exemption from charges under provisions to which section 1016 applies

This section has no associated Explanatory Notes

(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)section 214 of ICTA (chargeable payments connected with exempt distributions),

(b)section 804 of that Act (double taxation relief),

(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),

(e)section 755 (transactions in land), and

(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.