WebA trading subsidiary is a company owned and controlled by one or more charities, and is usually set up to generate income for the charity. The advantage of using subsidiary … WebThe main reason that many charities set up a trading company is because they could incur a tax liability if a non tax exempt trade is carried out through the charity. Since most trading subsidiaries use Gift Aid to profit shed there is ultimately no tax paid and it seems that the current regime only benefits accountants and lawyers.

Setting up a Trading Subsidiary - ctauk.org

WebTrading profits and Gift Aid: One of the main reasons for setting up a trading subsidiary is to generate funds for the charity. A trading subsidiary can donate its profits to its parent charity and claim Gift Aid tax relief on the donation, if it's liable for corporation tax. WebFor charities, setting up a trading subsidiary company can be a very tax-efficient way to raise funds. Read Katherine Wilkes’ Charities and trading… making broccoli in microwave

OSCR 2. Trading Subsidiaries - Office of the Scottish Charity …

WebMar 29, 2024 · It applies to your charity if it: has set up and owns a trading subsidiary has been set up by the non-charity, for example: corporate foundations, or charities set up … WebThe University has several subsidiary companies, some active and some dormant . Group Structure Chart (.pdf) The Charity Commission has guidance for trading subsidiaries. Freedom of information publication schemes Eastern HE Cost Sharing Ltd University of Essex Campus Services Ltd University of Essex Enterprises Ltd WebThe purpose of a trading subsidiary is usually to generate income for its parent charity. Trading subsidiaries must be used for non-primary purpose trades involving … making brochures in microsoft word