Corporation Tax Act 2010 section 515

Excess expenditure treated as non-charitable expenditure of earlier periods

Section 515 deals with what happens when a charitable company's non-charitable expenditure in an accounting period exceeds its available income and gains, and how the resulting "excess expenditure" is carried back to earlier periods.

• Where a charitable company's non-charitable spending exceeds its available income and gains for a period, the surplus is called "excess expenditure"
• Excess expenditure is treated as non-charitable expenditure of earlier accounting periods, to the extent it can be attributed to those periods under section 516
• Available income and gains comprise taxable income (after exemptions), chargeable gains, attributable income and gains, and non-taxable receipts such as donations and legacies
• Certain restrictions on charitable exemptions are ignored when calculating available income and gains, ensuring the calculation reflects the full underlying income and gains position