Taxes Consolidation Act 1997 Schedule 2B, paragraph 7

Declaration of charity

Paragraph 7 of Schedule 2B sets out the requirements for a declaration by a charity to an investment undertaking, so that the undertaking can pay out gains without deducting exit tax.

• A charity holding units in an investment undertaking can make a written declaration to avoid exit tax on gains, provided it meets the conditions in section 739D(6)(f).
• The declaration must be signed by the person entitled to the units, made on a Revenue-prescribed form, and must confirm that the unitholder is a qualifying charity.
• The declaration must state that the units are held for charitable purposes only and form part of the assets of a body or trust recognised by Revenue as established for charitable purposes.
• The declarer must undertake to notify the investment undertaking if the charity ceases to qualify, and must include any other information Revenue may reasonably require.