534Exemption for transactions in depositsU.K.
(1)Profits or gains arising to a charitable trust from the disposal of exempt deposit rights are not taken into account in calculating total income.
(2)Subsection (1) applies so far as the profits or gains are applied to charitable purposes only.
(3)For the purposes of this section, the exercise of an exempt deposit right is a disposal of it, except so far as the right is a right to receive interest.
(4)In this section “exempt deposit rights” means—
(a)a right to receive, with or without interest, a principal amount stated in, or determined in accordance with, the current terms of issue of an eligible debt security, where in accordance with those terms the issue of uncertificated units of the eligible debt security corresponds to the issue of a certificate of deposit,
(b)a right to receive the principal amount stated in a certificate of deposit, with or without interest, and
(c)an uncertificated right to receive a principal amount, with or without interest, as a result of a deposit of money.
(5)In this section—
“eligible debt security” has the meaning given in regulation 3(1) of the Uncertificated Securities Regulations 2001 (S.I. 2001/3755),
“uncertificated”, in relation to a unit, has the meaning given in regulation 3(1) of the Uncertificated Securities Regulations 2001,
“uncertificated right” means a right in respect of which no certificate of deposit has been issued, although the person for the time being entitled to it is entitled to call for the issue of such a certificate, and
“unit” has the meaning given in regulation 3(1) of the Uncertificated Securities Regulations 2001.