Commentary

B6.759 ATED—charitable companies

Business tax
Business tax | Commentary

B6.759 ATED—charitable companies

Business tax | Commentary

ATED—Exemptions

B6.759 ATED—charitable companies

A charitable company that is entitled to an SDI is regarded as not meeting the ownership condition (see B6.705) and therefore exempt from ATED if the interest is held by the company for qualifying charitable purposes (ie for use in furtherance of the charitable purposes of the charitable company or of another charity, or as an investment from which the profits are, or are to be, applied to the charitable purposes of the company). For the definition of charitable company, see B5.805. However, this exemption will not apply to any day that is an 'excluded day' (see below)1.

Excluded day for charitable companies exemption

A day is an 'excluded day' if the following conditions are met2:

  1.  

    (a)     a person ('the donor') has on or before that day made, or agreed to make, a gift to the charitable company or to a charity connected with it

  2.  

    (b)     there exist on that day arrangements under which or as a result of which a 'linked individual'

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