Income Tax Act 2007 section 532

Exemption for savings and investment income

Section 532 exempts certain types of savings and investment income from income tax when that income belongs to a charitable trust or is required to be applied to charitable purposes only.

• Qualifying income types include interest, dividends (UK and non-UK), purchased life annuity payments, profits from deeply discounted securities, and certain income from exempt unauthorised unit trusts
• The exemption applies where the income belongs to a charitable trust, or where legislation, a court judgment, charter, trust deed or will requires it to be used for charitable purposes only
• The income must fall within and be dealt with under Part 4 of ITTOIA 2005 (savings and investment income) and must actually be applied to charitable purposes
• Key terms such as "interest", "dividend", "deeply discounted security", "disposal" and "purchased life annuity" take their meanings from the relevant chapters of Part 4 of ITTOIA 2005