Income Tax Act 2007

532 Exemption for savings and investment income U.K.

(1) The income mentioned in subsection (2) is not taken into account in calculating total income if—

(a) it is income of a charitable trust, or

(b) it is required, under an Act, court judgment, charter, trust deed or will, to be applied to charitable purposes only.

(2) The income referred to in subsection (1) is—

(a) interest,

(b) a dividend or other distribution of a UK resident company,

(c) a dividend of a non-UK resident company,

(d) an annuity payment under a purchased life annuity,

(e) profits on the disposal of deeply discounted securities, or

(f) income treated for the purposes of [F1 regulation 15 of the Unauthorised Unit Trusts (Tax) Regulations 2013 as received by a unit holder from an exempt unauthorised unit trust].

(3) Subsection (1) applies only so far as the income falls within, and is dealt with under, Part 4 of ITTOIA 2005 (see section 366 of that Act as to provisions given priority over Part 4).

(4) Subsection (1) applies so far as the income is applied to charitable purposes only.

(5) In this section—

• “deeply discounted security” has the same meaning as in Chapter 8 of Part 4 of ITTOIA 2005 (profits from deeply discounted securities) (see section 430 of that Act),

• “disposal”, in relation to a deeply discounted security, has the same meaning as in Chapter 8 of Part 4 of that Act (see section 437(1) of that Act),

• “dividend”, in relation to a UK resident company, has the same meaning as in Chapter 3 of Part 4 of that Act (dividends etc from UK resident companies etc) (see section 382(4) of that Act),

• “interest” includes anything treated as interest for the purposes of Chapter 2 of Part 4 of that Act (interest), and

• “purchased life annuity” has the same meaning as in Chapter 7 of Part 4 of that Act (purchased life annuity payments) (see section 423 of that Act).

Textual Amendments

F1 Words in s. 532(2)(f) substituted (6.4.2014) by The Unauthorised Unit Trusts (Tax) Regulations 2013 (S.I. 2013/2819), regs. 1(3), 37(7) (with reg. 32)