Section 523 — Income Tax Act 2007: Payments from other charities: income tax liability and exemption

Payments from other charities: income tax liability and exemption 523 1 This section applies to payments which—

a are received by charitable trusts from other charities, b are not made for full consideration in money or money's worth, c are not charged to income tax, apart from this section, and d are not of a description which (on a claim) would be exempt from income tax under any of the exemptions conferred by this Part.

2 This section does not apply to a payment which arises from a source outside the United Kingdom.

3 Income tax is charged under this section on the payments.

4 It is charged on the full amount of the payments arising in the tax year.

5 But a payment is not taken into account in calculating total income so far as it is applied to charitable purposes only.

6 The amount charged under this section in the case of certain payments made by the trustees of a charitable trust in the exercise of a discretion is subject to section 494 (grossing up of discretionary payments from trusts).

7 The trustees of the charitable trust are liable for any tax charged under this section.