Charity Tax Relief on Trading Profits

Charities can carry out trading activities directly related to their charitable aims and objectives, and/or can trade as a way of raising money provided it is on a small scale and presents no significant risk to the charity’s assets. 

Profits from trading activities may be taxable but there are some exemptions, including:-

  • primary purpose trading
  • activities carried out by charity beneficiaries
  • small trading
  • profits from fundraising events
  • profits from charity lotteries

If your group is not exempt, you could consider conducting all or part of your activity through a subsidiary trading company and transfer some or all profits of the company back to the charity as a donation, in which case the charity will then be able to re-claim tax. 

Other Community Toolkit Topics to look at:



Further sources of information

We are always interested in your views and experience of using the Community Toolkit. If you have any feedback or questions please complete our Feedback Form

The Community Toolkit is owned and maintained by Skye and Lochalsh CVO Conditions of Use
Last Updated 04/04/2013 16:20