Taxes Consolidation Act 1997 section 609

Charities

Section 609 exempts capital gains accruing to charities from capital gains tax, provided the gains are applied for charitable purposes, and sets out the consequences where property ceases to be held on charitable trusts.

• A gain accruing to a charity is not a chargeable gain if it is applicable and applied for charitable purposes.
• Where property ceases to be subject to charitable trusts, the trustees are deemed to have disposed of and immediately reacquired the property at market value, and the resulting gain is chargeable.
• Any earlier gains on disposals from which the current property was derived, not applied for charitable purposes, also become chargeable.
• An assessment arising from property ceasing to be held on charitable trusts may be made at any time within 10 years after the end of the year of assessment in which the property ceased to be so held.