Income Tax Act 2007 section 560

Conditions to be met for some securities

Section 560 sets out the additional conditions that certain securities must satisfy before they qualify as approved charitable investments under section 559, and specifies when those conditions can be waived.

• Securities falling under section 559(1)(b), (c) or (d) must meet Condition A (traded on a recognised or principal exchange) and, if they are shares or debenture stock, Condition B (fully paid up, payable within nine months, or shares with no nominal value) — unless they are traded on a government-supervised money market
• Securities issued by an incorporated company under section 559(1)(i) must also meet Condition C: the company must have at least £1,000,000 of issued and paid-up share capital and must have paid dividends on all its shares in each of the five years preceding the calendar year of investment
• A company formed to take over the business of, or acquire the securities or control of, another company is treated as having paid a dividend in any year where the target company paid one — regardless of any additional purposes the acquiring company may have
• Key definitions apply: "business day" means a working day in the place of investment, and "the investment day" is the day the investment is made; foreign currency share capital is converted at the UK closing exchange rate on the last business day before the investment day