Section 532 — Income Tax Act 2007: Exemption for savings and investment income

Exemption for savings and investment income 532 1 The income mentioned in subsection (2) is not taken into account in calculating total income if—

a it is income of a charitable trust, or b it is required, under an Act, court judgment, charter, trust deed or will, to be applied to charitable purposes only.

2 The income referred to in subsection (1) is—

a interest, b a dividend or other distribution of a UK resident company, c a dividend of a non-UK resident company, d an annuity payment under a purchased life annuity, e profits on the disposal of deeply discounted securities, or f income treated for the purposes of regulation 15 of the Unauthorised Unit Trusts (Tax) Regulations 2013 as received by a unit holder from an exempt unauthorised unit trust .

3 Subsection (1) applies only so far as the income falls within, and is dealt with under, Part 4 of ITTOIA 2005 (see section 366 of that Act as to provisions given priority over Part 4).

4 Subsection (1) applies so far as the income is applied to charitable purposes only.

5 In this section— “ deeply discounted security ” has the same meaning as in Chapter 8 of Part 4 of ITTOIA 2005 (profits from deeply discounted securities) (see section 430 of that Act), “ disposal ”, in relation to a deeply discounted security, has the same meaning as in Chapter 8 of Part 4 of that Act (see section 437(1) of that Act), “ dividend ”, in relation to a UK resident company, has the same meaning as in Chapter 3 of Part 4 of that Act (dividends etc from UK resident companies etc) (see section 382(4) of that Act), “ interest ” includes anything treated as interest for the purposes of Chapter 2 of Part 4 of that Act (interest), and “ purchased life annuity ” has the same meaning as in Chapter 7 of Part 4 of that Act (purchased life annuity payments) (see section 423 of that Act).