Subjects:

Charities

Contents:

Part I What is a trade?: tax definition of trade

trading activities of charities. Part II Charity Commission view of trading: why trustees need to exercise care

lessons from Charity Commission investigations involving trading. Part III The tax exemption of trading: the basic exemption

extending the exemption - ancillary activities

extending the exemption - peripheral activities

extending the exemption - fundraising activities

extending the exemption - fundraising events. Part IV Using a trading company: the basic formula - establishing the company

funding the company. Part V Other issues to consider on trading: identifying and dealing with risk

involvement with commercial enterprises.

Andrew Burgess explains the specific legal situation of trading as a charity using a number of practical examples to illustrate how such trading is regulated. He considers the Charity Commission's view on trading, how to establish a charitable company and which sectors are exempt from tax.