Paragraph 10

United Kingdom

For the purposes of section 506, a loan which is not made by way of investment is a qualifying loan if it consists of—

(a)

a loan made to another charity for charitable purposes only; or

(b)

a loan to a beneficiary of the F2charitable company which is made in the course of carrying out the purposes of the charitable company; or

(c)

money placed on current account with F3a bank otherwise than as part of such an arrangement as is mentioned in paragraph 7(2) above; or

(d)

any other loan as to which the Board are satisfied, on a claim made to them in that behalf, that the loan is made for the benefit of the F4charitable company and not for the avoidance of tax (whether by the charitable company or by some other person).

F5(2)

In this paragraph “bank” has the meaning given by section 840A.

Annotations

Textual amendments

F1: Sch. 20 para. 10 renumbered as para. 10(1) (with application in accordance with Sch. 37 para. 10 of the amending Act) by virtue of Finance Act 1996 (c. 8), Sch. 37 para. 2(4)
F2: Words in Sch. 20 para. 10(1)(b) substituted (6.4.2007 with effect in accordance with s. 1034(1) of the amending Act) by Income Tax Act 2007 (c. 3), Sch. 1 para. 237(4)(a) (with Sch. 2)
F3: Words in Sch. 20 para 10 substituted (with application in accordance with Sch. 37 para. 10 of the amending Act) by Finance Act 1996 (c. 8), Sch. 37 para. 5
F4: Words in Sch. 20 para. 10(1)(d) substituted (6.4.2007 with effect in accordance with s. 1034(1) of the amending Act) by Income Tax Act 2007 (c. 3), Sch. 1 para. 237(4)(b) (with Sch. 2)
F5: Sch. 20 para. 10(2) inserted (with application in accordance with Sch. 37 para. 10 of the amending Act) by Finance Act 1996 (c. 8), Sch. 37 para. 2(4)

Notes on Schedule 20

Textual amendments

F1: Sch. 20 repealed (1.4.2010 with effect in accordance with s. 1184(1) of the repealing Act) by Corporation Tax Act 2010 (c. 4), Sch. 1 para. 144, Sch. 3 Pt. 1 (with Sch. 2)