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

[ITA67 s334(1)(a) and (c), (2A) and (3); FA69 s33(1) and Sch4 PtI and s65(1) and Sch5 PtI; FA81 s11]

(1) In this section, “charity” means any body of persons or trust established for charitable purposes only.

(2) Exemption shall be granted—

(a) from income tax chargeable under Case I (b) of Schedule D by virtue of section 18(2) where the profits or gains so chargeable arise out of lands, tenements or hereditaments which are owned and occupied by a charity;

(b) from income tax chargeable under Schedule D in respect of the profits of a trade ^[1]>or profession^<[1] carried on by any charity, if the profits are applied solely to the purposes of the charity and either—

(i) the trade ^[1]>or profession^<[1] is exercised in the course of the actual carrying out of a primary purpose of the charity, or

(ii) the work in connection with the trade ^[1]>or profession^<[1] is mainly carried on by beneficiaries of the charity.

(3) Subsection (2)(b) shall apply in respect of the profits of a trade of farming carried on by a charity as if the words after “solely to the purposes of the charity” were deleted.