Section 501 | Section 496(1)(g) and (h): investments and loans

(1)Subsection (2) applies if in an accounting period a charitable company—

(a)realises the whole or part of an investment which was made in the period and is not an approved charitable investment (see section 511), or

(b)is repaid the whole or part of a loan which was made in the period and is neither an investment nor an approved charitable loan (see section 514).

(2)Any further investment or lending in the accounting period of the sum realised or repaid, so far as it does not exceed the sum originally invested or lent, is not non-charitable expenditure as a result of section 496(1)(g) or (h).