(1)A charitable trust has a non-exempt amount for a tax year if it has—
(a)non-charitable expenditure for the tax year (amount A), and
(b)attributable income and gains for the tax year (amount B).
(2)The non-exempt amount for the tax year is—
(a)amount A, or
(b)if less, amount B.
(3)For the purposes of this Part—
(a)a charitable trust's “attributable income” for a tax year is the charitable trust's income for the tax year that is exempt from income tax as a result of any of the exemptions under this Part,
(b)a charitable trust's “attributable gains” for a tax year are any gains accruing to the charitable trust in the tax year that as a result of [F1section 256(1)] of TCGA 1992, are not chargeable gains, and
(c)a charitable trust's “attributable income and gains” for a tax year is the sum of its attributable income for the tax year and its attributable gains for the tax year.
(4)In applying subsection (3)(a) ignore any restrictions on the exemptions under this Part which result from section 539(2).
(5)In applying subsection (3)(b) ignore any restriction on the exemption under section 256(1) of TCGA 1992 which results from section 256(4) of that Act.
Textual Amendments
F1Words in s. 540(3)(b) substituted (with effect in accordance with art. 1(2) of the amending S.I.) by Income Tax Act 2007 (Amendment) (No.3) Order 2007 (S.I. 2007/3506), arts. 1(1), 3(3)