Section 478 — Corporation Tax Act 2010: Exemption for profits etc of charitable trades

Exemption for profits etc of charitable trades 478 1 The income mentioned in subsection (2) is not taken into account in calculating total profits if the condition in subsection (3) is met.

2 The income referred to in subsection (1) is—

a profits of a charitable trade carried on by a charitable company, and b post-cessation receipts arising from a charitable trade carried on by a charitable company which are received by the company or to which it is entitled.

3 The condition is that the profits are, or (as the case may be) the post-cessation receipt is, applied to the purposes of the charitable company only.

4 In this section “ post-cessation receipt ” means an amount that is a post-cessation receipt for the purposes of Part 3 of CTA 2009 (see sections 190 to 195 of that Act).

5 The exemption under subsection (1) requires a claim.