208 Lands owned and occupied, and trades carried on, by charities

This section exempts from income tax certain income arising to charities. The sources of income to which the exemption applies are —

• income arising from lands, tenements or hereditaments which are owned and occupied by a charity and where the land, etc is occupied for the purposes of quarrying, mining, etc or of any of the other concerns set out in section 18(2), Case I(b) of Schedule D,
• trading profits, if the profits are applied solely for charitable purposes and either the trade is exercised in the course of the actual carrying out of the primary purpose of the charity or the work in connection with the trade is mainly carried on by beneficiaries of the charity. Where the trading profits arise from a trade of farming carried on by a charity, those profits need not be applied solely for charitable purposes.

A “charity” is any body of persons or trust established for charitable purposes only.

Relevant Date: Finance Act 2021