Part 10Special rules about charitable trusts etc

Other exemptions

536Exemption for certain miscellaneous income

1

The income mentioned in subsection (3) 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

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

3

The income referred to in subsection (1) is—

a

royalties and other income from intellectual property that do not fall within Chapter 2 of Part 2 of ITTOIA 2005 (receipts of a trade etc),

b

income derived from a relevant telecommunication right that is not income falling within Chapter 2 of Part 2 of ITTOIA 2005 (receipts of a trade etc),

c

annual payments charged to tax under Chapter 7 of Part 5 of ITTOIA 2005, and

d

relevant foreign distributions.

4

In this section—

  • “intellectual property” has the same meaning as in section 579 of ITTOIA 2005,

  • “relevant foreign distribution” means a distribution of a non-UK resident company which—

    1. a

      is not chargeable to tax under Chapter 4 of Part 4 of ITTOIA 2005 (dividends from non-UK resident companies), but

    2. b

      would be chargeable to tax under Chapter 3 of that Part of that Act (dividends etc from UK resident companies etc) if the company were a UK resident company, and

  • “relevant telecommunication right” has the same meaning as in Chapter 10 of Part 2 of that Act (trade profits: certain telecommunications rights) (see section 146 of that Act).