Income Tax Act 2007 section 519

Meaning of "charitable trust"

Section 519 defines what counts as a "charitable trust" for the purposes of the income tax rules on charities.

• A "charitable trust" is a trust established for charitable purposes only, and it must actually be used for those charitable purposes.
• The definition applies specifically to charities that are structured as trusts — it does not cover charities set up as companies, unincorporated associations, or bodies incorporated by Royal Charter.
• Charities constituted as companies fall under separate corporation tax rules rather than the income tax rules in this Part.
• The distinction matters because the income tax provisions in this Part apply only to trust-based charities, while other legal forms of charity are dealt with elsewhere in tax legislation.