Commentary

D7.202 Non-charitable activities

Corporate tax
Corporate tax | Commentary

D7.202 Non-charitable activities

Corporate tax | Commentary

D7.202 Non-charitable activities

Charities may undertake activities, such as trading, which are not in themselves charitable, the profits of which would be liable to tax. In such circumstances, a company may be set up to carry on those activities, the shares in which are owned by the charity. Such a company is liable to corporation tax on its profits like any other trading company.

With effect from 22 March 2006, a charity (whether a corporation or not) carrying on a composite trade, part of which is for its primary purpose and part otherwise, must treat each part as a separate trade

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