Section 478 | Exemption for profits etc of charitable trades

(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.