Commentary

B5.821 Profits of trading companies owned by charities

Business tax
Business tax | Commentary

B5.821 Profits of trading companies owned by charities

Business tax | Commentary

B5.821 Profits of trading companies owned by charities

A charity may find it necessary or desirable to set up a company to carry on its trading activities1. There may be non-tax reasons for establishing such trading companies. An example of this is where a number of charities jointly own a company so that its trading profits can be easily distributed to them, or where the charity would commit a breach of trust by carrying on a trading activity itself. Tax considerations are also important: in practice, a charity is particularly likely to set up a trading company where a tax

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