{
  "url": "https://openlegislation.uk/income-and-corporation-taxes-act-1988/schedule-20/paragraph-10",
  "json_url": "https://openlegislation.uk/income-and-corporation-taxes-act-1988/schedule-20/paragraph-10.json",
  "legislation": "ukpga/1988/1",
  "legislation_title": "Income and Corporation Taxes Act 1988",
  "legislation_url": "https://openlegislation.uk/income-and-corporation-taxes-act-1988",
  "path": "schedule/20/paragraph/10",
  "kind": "paragraph",
  "number": "10",
  "heading": null,
  "text": "1 For the purposes of section 506, a loan which is not made by way of investment is a qualifying loan if it consists of—\n(a) a loan made to another charity for charitable purposes only; or\n(b) a loan to a beneficiary of the charitable company which is made in the course of carrying out the purposes of the charitable company; or\n(c) money placed on current account with a bank otherwise than as part of such an arrangement as is mentioned in paragraph 7(2) above; or\n(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 charitable company and not for the avoidance of tax (whether by the charitable company or by some other person).\n(2) In this paragraph “bank” has the meaning given by section 840A.",
  "extent": "E+W+S+N.I.",
  "status": null,
  "version": "current",
  "annotations": [
    {
      "type": "F",
      "label": "F1",
      "text": "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)"
    },
    {
      "type": "F",
      "label": "F2",
      "text": "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)"
    },
    {
      "type": "F",
      "label": "F3",
      "text": "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"
    },
    {
      "type": "F",
      "label": "F4",
      "text": "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)"
    },
    {
      "type": "F",
      "label": "F5",
      "text": "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)"
    }
  ],
  "outstanding_effects": [],
  "provenance": {
    "source": "legislation.gov.uk",
    "source_url": "https://www.legislation.gov.uk/ukpga/1988/1/schedule/20/paragraph/10",
    "retrieved_at": "2026-10-29T09:49:54.309394+00:00"
  },
  "licence": "Open Government Licence v3.0",
  "licence_url": "https://www.nationalarchives.gov.uk/doc/open-government-licence/version/3/",
  "attribution": "Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives."
}