An investment is an approved charitable investment for the purposes of section 543 (meaning of “non-charitable expenditure”) if it is an investment of any of the following types. Type 1
An investment to which section 559 applies.
Type 2
An investment in a common investment fund established under—
(a)section 22 of the Charities Act 1960 (c. 58),
(b)section 24 of the Charities Act 1993 (c. 10), or
(c)section 25 of the Charities Act (Northern Ireland) 1964.
Type 3
An investment in a common deposit fund established under—
(a)section 22A of the Charities Act 1960, or
(b)section 25 of the Charities Act 1993.
Type 4
An investment in a fund which—
(a)is similar to a fund mentioned in relation to Type 2 or 3, and
(b)is established for the exclusive benefit of charities by or under a provision relating to any particular charities or class of charities contained in an Act.
Type 5
An interest in land, other than an interest held as security for a debt.
Type 6
Any of the following issued by Her Majesty's Government in the United Kingdom—
(a)bills,
(b)Certificates of Tax Deposit,
(c)Savings Certificates, and
(d)Tax Reserve Certificates.
Type 7
Northern Ireland Treasury Bills.
Type 8
Units in a unit trust scheme (as defined in section 237(1) of FISMA 2000) or in a recognised scheme (as defined in section 237(3) of FISMA 2000).
“Units” is defined in section 237(2) of FISMA 2000.
Type 9
A deposit with a bank (as defined in section 991)—
(a)in respect of which interest is payable at a commercial rate, and
(b)which is not made as part of an arrangement under which a loan is made by the bank to some other person.
Type 10
A deposit with—
(a)the National Savings Bank,
(b)a building society, or
(c)a credit institution which operates on mutual principles and which is authorised by an appropriate governmental body in the territory in which the deposit is taken.
Type 11
Certificates of deposit (including uncertificated eligible debt security units as defined in section 986(3)).
Type 12
A loan or other investment as to which an officer of Revenue and Customs is satisfied, on a claim, that it is made for the benefit of the charitable trust and not for the avoidance of tax (whether by the trust or any other person).