5.24.1 That is entirely for the charity to decide. The investments can be sold immediately, or at a later date, and the proceeds used for charitable purposes or they can be retained by the charity as an investment. 5.24.2 If the charity decides to retain a gifted investment of shares or securities, it will probably receive dividend income. Charities can’t claim repayment of the tax credit attaching to dividends they receive. 5.24.3 Any gift of investments to a charity is not an investment by the charity. So the charity won’t be treated as having made an investment that is not a ‘qualifying investment’ for the purposes of Sections 558 and 559 Income Tax Act (ITA) 2007 or Sections 511 and 512 Corporation Tax Act (CTA) 2010 where the cost of non-qualifying investments is treated as ‘non-charitable expenditure’ and can give rise to a tax charge. A sale of investments to a charity at undervalue does, strictly, involve the charity in making an investment. Where those investments are not ‘qualifying investments’ for the purposes of Sections 558/559 ITA or Sections 511/512 CTA, HMRC would be unlikely to treat their cost as ‘non-qualifying expenditure’ if they were acquired for significantly less than they were worth and no tax avoidance was involved.