Income Tax Act 2007 section 544

Section 543: supplementary

Section 544 provides supplementary rules that support the definition of non-charitable expenditure in section 543, covering how losses are calculated, what counts as a miscellaneous transaction, and how trade losses relate to tax years.

• Losses from trades, property businesses, and miscellaneous transactions are all calculated on the same basis as the corresponding profits or income
• A miscellaneous transaction is one that would have been charged to income tax (ignoring charitable exemptions) and for which the charity's trustees would have been liable
• Trade losses for a tax year are determined by reference to the basis period for that year, not the tax year itself
• These rules ensure consistent treatment when measuring the extent of a charity's non-charitable expenditure