Taxation of Chargeable Gains Act 1992 section 256B

How gains are attributed to the non-exempt amount: charitable trusts

Section 256B sets out the process by which chargeable gains of a charitable trust are allocated to the non-exempt amount (the portion that loses its tax exemption under section 256A).

• Trustees of a charitable trust can choose which of their chargeable gains are attributed to the non-exempt amount, by notifying HMRC
• The specification must be made by formal notice to an officer of HMRC
• If HMRC requests a specification and the trustees fail to respond within 30 days, HMRC can step in and make the allocation themselves
• The 30-day deadline runs from the date on which the HMRC officer made the requirement