Consultation: Relief For Charities Trading Activities

CFDG welcomed the opportunity to comment on HMRC's proposed legislative changes to preserve the current taxation status of charities trading activities. This legislation is likely to be introduced in the 2006 Finance Bill. CFDG supports the proposal to amend section 505(1)(e) so that it can apply to parts of a trade thereby ensuring that any potential for tainting of a primary purpose trade is prevented. However, CFDG has concerns about the proposal to apply the small trades exemption to ancillary trades and the impact these proposed changes may have on the treatment of sponsorship of primary purpose trades.

A copy of the HMRC letter requesting comments on proposed legislative changes
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A copy of the CFDG response to HMRC
download (117kb)