Income Tax (Trading and Other Income) Act 2005 section 630

Exception for gifts to charities

Section 630 provides an exception from the rule that treats settlement income paid to or for the benefit of a settlor's minor child as the settlor's income, where that income is given to or earmarked for a charity.

• Settlement income given by trustees to a charity in the same tax year it arises, or income to which a charity is entitled under the settlement terms, is not treated as the settlor's income under section 629
• Where qualifying income from multiple sources exceeds the combined amounts exempt under this section and the parallel exemption in section 628 (where the settlor retains an interest), the exempt portion must be apportioned rateably across those sources
• The rateable apportionment does not override any requirement in the settlement that the whole or a specified part of income from a particular source must be given to charity
• The terms "charity", "qualifying income" and "UK settlement" carry the same meanings as defined in section 628