Taxation of Chargeable Gains Act 1992 section 256A

Attributing gains to the non-exempt amount: charitable trusts

Section 256A deals with how chargeable gains of a charitable trust are attributed to its non-exempt amount, ensuring that the total of taxable gains and income does not exceed that amount.

• Where a charitable trust has a non-exempt amount for a tax year, its chargeable gains can be attributed to that amount, but only to the extent it has not already been used up
• The non-exempt amount can be used up by attributing chargeable gains to it, by attributing taxable income to it, or by a combination of both
• The entire non-exempt amount must be fully used up — it cannot be left partially unallocated
• The terms "attributable income" and "attributable gains" carry the same meaning as defined in Part 10 of the Income Tax Act 2007