Your World of Legal Intelligence
 United Kingdom | +44 (0) 20 7284 8080

Chapter IEIM404730

Document Cited in Related
Vincent
Published date25 April 2016
Record NumberIEIM404730
IEIM404730: Charities: Income from Financial Assets

When considering the Financial Assets test in IEIM404720 a charity must review whether its income is primarily from investing in financial assets. In this context financial assets are made up of:

Securities (stocks, shares, bonds, debentures), commodities, swaps, insurance or annuity contracts and interests in partnerships.

It also includes any interests in the above investments.

Financial Assets do not include direct interests in real property or cash.

Trading subsidiaries

Where a charity structure includes a trading subsidiary that pays up profits to a parent entity under the gift aid rules such distributions are treated as a donation from the subsidiary to the parent entity under UK tax rules. For the purpose of determining whether a charity is an investment entity HMRC consider that such income is not income from Financial Assets.

Rental income

Where a charity receives rental income from a property, if that property is held directly by the charity the income will be from a direct interest in real property, and so...

To continue reading

Request your trial

VLEX uses login cookies to provide you with a better browsing experience. If you click on 'Accept' or continue browsing this site we consider that you accept our cookie policy. ACCEPT