Corporation Tax Act 2010 section 509

Connected charities

Section 509 extends the meaning of "charitable company" so that charities connected with a charitable company are treated as part of the same group for the purposes of the non-charitable expenditure rules in sections 502 to 508.

• For the purposes of the rules on non-charitable expenditure, a charitable company includes any charity that is "connected" with it.
• Two charities are connected if they share common management (such as the same board of directors) or if one charity controls the other, for example by holding its assets in a separate entity.
• The definition of "connected" in this section applies only to charities and charitable companies — it is different from the general "connected persons" definition used elsewhere in the tax legislation, and different from the "connected" concept used in section 510 relating to substantial donors.
• The standard definition of connected persons in section 1122 of the Corporation Tax Act 2010 does not apply for this purpose; instead, section 509 provides its own specific definition.