Corporation Tax Act 2010 section 485

Exemption for property income etc

Section 485 provides an exemption from corporation tax for property income, certain trading income arising from land, and distributions from UK Real Estate Investment Trusts, where the relevant assets are held for charitable purposes and the income is applied to those purposes.

• Income from land (rents and other receipts) that is taxable as either trading income or property income is exempt from corporation tax where the land is held for charitable purposes
• Distributions from UK Real Estate Investment Trusts are exempt where the shares giving rise to those distributions are held for charitable purposes
• All of these exemptions only apply to the extent that the income is actually used for charitable purposes
• A claim must be made in order to benefit from any of these exemptions