Income Tax Act 2007 section 559

Securities which are approved charitable investments

Section 559 defines which investments in securities qualify as approved charitable investments for the purposes of the rules that restrict charitable tax exemptions.

• Approved charitable investments include securities issued or guaranteed by the UK Government, EU Member State governments, or any other territorial government or governmental body.
• Securities issued by international entities listed in the Annex to Council Directive 2003/48/EC, building societies, mutual credit institutions, and open-ended investment companies also qualify.
• Company securities qualify whether or not they are listed on a recognised stock exchange, though some categories are subject to additional conditions set out in section 560.
• Key definitions apply broadly: "securities" includes shares and debentures; "debentures" includes debenture stock, bonds, loan stock, and notes; and "shares" includes stocks.