Income Tax Act 2007 section 652

Securities ceasing to be held on charitable trusts

Section 652 deals with what happens for accrued income purposes when securities stop being held on charitable trusts.

• When securities cease to be subject to charitable trusts, a deemed transfer is triggered for accrued income scheme purposes
• The trustees are treated as having transferred the securities at the exact point they cease to be held on charitable trusts
• The deemed transfer is from the trustees acting as charitable trustees to themselves acting in a different (non-charitable) capacity
• The rules in sections 623 and 624 then determine whether the deemed transfer is treated as made with or without accrued interest