Section 561 — Income Tax Act 2007: Approved charitable loans

Approved charitable loans 561 1 A loan is an approved charitable loan for the purposes of section 543 (meaning of “non-charitable expenditure”) if it meets conditions A and B.

2 Condition A is that the loan is not made by way of investment.

3 Condition B is that either—

a the loan is made to another charity for charitable purposes only, b it is made to a beneficiary of the charitable trust in the course of carrying out the purposes of the charitable trust, c it consists of money placed on current account with a bank otherwise than as part of an arrangement under which a loan is made by a bank to some other person, or d an officer of Revenue and Customs is satisfied, on a claim, that the loan is made for the benefit of the charitable trust and not for the avoidance of tax (whether by the charitable trust or by some other person).

4 In this section “ bank ” has the meaning given by section 991.