Office of Public Sector Information
SCHEDULE 19 continued PART II continued
17 (1) The inspector may, by notice, require any company which is, or appears to him to be, a close company to furnish him within such time (not being less than 30 days) as may be specified in the notice with such particulars as he thinks necessary for the purposes of this Chapter.
(2) If for those purposes any person in whose name any shares are registered is so required by notice by the inspector, he shall state whether or not he is the beneficial owner of the shares and, if not the beneficial owner of the shares or any of them, shall furnish the name and address of the person or persons on whose behalf the shares are registered in his name.
(3) Sub-paragraph (2) above shall apply in relation to loan capital as it applies in relation to shares.
(4) The inspector may, for the purposes of this Chapter, by notice require—
(a) any company which appears to him to be a close company to furnish him with particulars of any bearer securities issued by the company, and the names and addresses of the persons to whom the securities were issued and the respective amounts issued to each person; and
(b) any person to whom securities were so issued, or to or through whom such securities were subsequently sold or transferred, to furnish him with such further information as he may require with a view to enabling him to ascertain the names and addresses of the persons beneficially interested in the securities.
In this sub-paragraph “securities” includes shares, stocks, bonds, debentures and debenture stock and also any promissory note or other instrument evidencing indebtedness to a loan creditor of the company.
(5) Any power which the inspector may exercise under this paragraph for the purposes of this Chapter may also be exercised for the purposes of sections 419 to 422.
18 (1) Any functions conferred by this Chapter on the inspector may also be exercised by the Board; and references in this Chapter to the inspector shall be construed accordingly.
(2) Where by virtue of this paragraph a notice is served by the Board under paragraph 13(1) above any appeal under that paragraph shall be to the Special Commissioners.
Section 506.
1 Investments specified in any of the following paragraphs of this Part of this Schedule are qualifying investments for the purposes of section 506.
2 Any investment falling within Part I, Part II, apart from paragraph 13 (mortgages etc.) or Part III of Schedule 1 to the [1961 c. 62.] Trustee Investments Act 1961.
3 Any investment in a common investment fund established under section 22 of the [1960 c. 58.] Charities Act 1960 or section 25 of the [1964 c. 33 (N.I.).] Charities Act (Northern Ireland) 1964 or in any similar fund established for the exclusive benefit of charities by or under any enactment relating to any particular charities or class of charities.
4 Any interest in land, other than an interest held as security for a debt of any description.
5 Shares in, or securities of, a company which are quoted on a recognised stock exchange, or which are dealt in on the Unlisted Securities Market.
6 Units, or other shares of the investments subject to the trusts, of a unit trust scheme within the meaning of the [1986 c. 60.] Financial Services Act 1986.
7 (1) Deposits with an institution authorised under the [1987 c. 22.] Banking Act 1987 in respect of which interest is payable at a commercial rate.
(2) A deposit mentioned in sub-paragraph (1) above is not a qualifying investment if it is made as part of an arrangement under which a loan is made by the authorised institution to some other person.
8 Certificates of deposit as defined in section 56(5).
9 (1) Any loan or other investment as to which the Board are satisfied, on a claim made to them in that behalf, that the loan or other investment is made for the benefit of the charity and not for the avoidance of tax (whether by the charity or any other person).
(2) The reference in sub-paragraph (1) above to a loan includes a loan which is secured by a mortgage or charge of any kind over land.
10 For the purposes of section 506, a loan which is not made by way of investment is a qualifying loan if it consists of—
(a) a loan made to another charity for charitable purposes only; or
(b) a loan to a beneficiary of the charity which is made in the course of carrying out the purposes of the charity; or
(c) money placed on current account with an institution authorised under the [1987 c. 22.] Banking Act 1987 otherwise than as part of such an arrangement as is mentioned in paragraph 7(2) above; or
(d) any other loan as to which the Board are satisfied, on a claim made to them in that behalf, that the loan is made for the benefit of the charity and not for the avoidance of tax (whether by the charity or by some other person).
11 This Part of this Schedule applies in the circumstances specified in subsection (6) of section 506 and in this Part—
(a) “the primary period” means the chargeable period of the charity concerned in which there is such an excess as is mentioned in that subsection;
(b) “unapplied non-qualifying expenditure” means so much of the excess referred to in that subsection as does not exceed the non-qualifying expenditure of the primary period; and
(c) “earlier period”, in relation to an amount of unapplied non-qualifying expenditure, means any chargeable period of the charity concerned which ended not more than six years before the end of the primary period.
12 (1) So much of the unapplied non-qualifying expenditure as is not shown by the charity to be the expenditure of non-taxable sums received by the charity in the primary period shall be treated in accordance with paragraph 13 below as non-qualifying expenditure of earlier periods.
(2) In sub-paragraph (1) above “non-taxable sums” means donations, legacies and other sums of a similar nature which, apart from section 505(1) of this Act and section 145 of the 1979 Act, are not within the charge to tax.
13 (1) Where, in accordance with paragraph 12 above, an amount of unapplied non-qualifying expenditure (“the excess expenditure”) falls to be treated as non-qualifying expenditure of earlier periods—
(a) it shall be attributed only to those earlier periods (if any) which, apart from the attribution, (but taking account of any previous operation of this paragraph) the relevant income and gains exceed the aggregate of the qualifying and non-qualifying expenditure incurred in that period; and
(b) the amount to be attributed to any such earlier period shall not be greater than the excess of that period referred to in paragraph (a) above.
(2) Where there is more than one earlier period to which the excess expenditure can be attributed in accordance with sub-paragraph (1) above, it shall be attributed to later periods in priority to earlier periods.
(3) In so far as any of the excess expenditure cannot be attributed to earlier periods in accordance with this paragraph, it shall be disregarded for the purposes of section 506(6) (and this Part of this Schedule).
14 All such adjustments shall be made, whether by way of the making of assessments or otherwise, as may be required in consequence of the provisions of this Part of this Schedule.
Income and Corporation Taxes Act 1988