Income Tax Act 2007 section 555

Donors: exceptions

Section 555 specifies certain types of donors that are exempt from the rules restricting tax relief where a charity receives funds from connected non-charitable bodies.

• This section provides exceptions to the donor restrictions set out in section 549, which limits charitable tax reliefs in certain circumstances.
• Companies established by charitable trusts — for example, trading subsidiaries set up to generate funds for the charity — are excluded from the donor restrictions.
• Registered social landlords and housing associations are also excluded, recognising that they frequently share services and premises with charities through complex group structures.
• These exceptions acknowledge that some non-charitable entities work closely with charities to meet both charitable and non-charitable objectives, and should not trigger the anti-avoidance provisions.