Section 531 — Income Tax Act 2007: Exemption for property income etc

Exemption for property income etc 531 1 Income which is chargeable to income tax under Part 2 of ITTOIA 2005 (trading income) as a result of section 261 of that Act is not taken into account in calculating total income so far as—

a it arises in respect of rents or other receipts from an estate, interest or right in or over land, and b the estate, interest or right is vested in any person in trust for a charitable trust or for charitable purposes.

2 Income which is chargeable to income tax under Part 3 of ITTOIA 2005 (property income) is not taken into account in calculating total income so far as—

a it arises in respect of an estate, interest or right in or over land, and b the estate, interest or right is vested in any person in trust for a charitable trust or for charitable purposes. 2A Distributions to which section 548 of CTA 2010 (Real Estate Investment Trusts: distributions) applies and which are chargeable to income tax under Part 2 or Part 3 of ITTOIA 2005 are not taken into account in calculating total income so far as they arise in respect of shares vested in a person in trust for a charitable trust or for charitable purposes.

3 Subsection (1) to (2A) apply so far as the income is applied to charitable purposes only.