# Income and Corporation Taxes Act 1988, Paragraph 12

Extent: E+W+S+N.I.

(1) So much of the unapplied non-qualifying expenditure as is not shown by the charity to be the expenditure of non-taxable sums received by the charity in the primary period shall be treated in accordance with paragraph 13 below as non-qualifying expenditure of earlier periods.
(2) In sub-paragraph (1) above “non-taxable sums” means donations, legacies and other sums of a similar nature which, apart from section 505(1) of this Act and section 256 of the 1992 Act, are not within the charge to tax.

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Source: https://www.legislation.gov.uk/ukpga/1988/1/schedule/20/paragraph/12 (the official version)
Page: https://openlegislation.uk/income-and-corporation-taxes-act-1988/schedule-20/paragraph-12
Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives.