Corporation Tax Act 2010

479 Meaning of “charitable trade”

(1) For the purposes of this Part a trade carried on by a charitable company is a charitable trade if—

(a) the trade is exercised in the course of carrying out a primary purpose of the charitable company, or

(b) the work in connection with the trade is mainly carried out by beneficiaries of the charitable company.

(2) For the purposes of subsection (1)(a), if a trade is exercised partly in the course of carrying out a primary purpose of the charitable company and partly otherwise, each part is to be treated as a separate trade.

(3) For the purposes of subsection (1)(b), if work in connection with a trade is carried out partly but not mainly by beneficiaries, the part in connection with which work is carried out by beneficiaries and the other part are to be treated as separate trades.

(4) If different parts of a trade are treated as separate trades under subsection (2) or (3), a just and reasonable apportionment is to be made for that purpose of—

(a) expenses and receipts of the trade, and

(b) any amounts which are post-cessation receipts arising from the trade for the purposes of Part 3 of CTA 2009.