Charity trading

Many charities trade, either as an integral part of their charitable activities or to raise funds.  Some charitable groups/organisations set up a subsidiary ("business" or "trading arm") as a way to generate income on a more substantial or permanent basis, which is a non-charitable trading company.

These are often set up as a social enterprise or community business.

Trading is normally defined as involving the provision of goods or services to customers or clients (for profit).  If your group or organisation carries out any type of trading activity, find out about any tax requirements that apply.  Even one-off or occasional ventures may be treated as a trade for tax purposes if it involves the sale of goods or the provision of services for profit.  For charities, the profits made from trading are generally exempt from tax provided that certain conditions are met.  More...

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