Corporation Tax Act 2010 section 513

Conditions to be met for some securities

Section 513 sets out the additional conditions that certain securities must satisfy before they can qualify as approved charitable investments under section 512, ensuring that only securities meeting minimum standards of marketability, payment status, and issuer quality are eligible.

• Securities listed under section 512(1)(b), (c), (d) or (i) must meet Condition A (traded on a recognised or principal exchange) and, if they are shares or debenture stock, Condition B (fully paid up, due to be fully paid within nine months, or issued with no nominal value) — unless they are traded on a government-supervised money market
• Where the securities are issued by an incorporated company and rely on section 512(1)(i), Condition C must also be met: the company must have at least £1,000,000 in issued and paid-up share capital and must have paid dividends on all its shares in each of the five years before the year of investment
• A company formed to take over the business of, or acquire securities in or control of, another company is treated as having paid a dividend in any year where the other company or companies did so, regardless of any additional purposes for which the acquiring company was formed
• The sterling equivalent of share capital denominated in a foreign currency is determined using the exchange rate at the close of business on the last business day before the investment is made