Section 480 | Exemption for profits of small-scale trades

(1)The income mentioned in subsection (2) is not taken into account in calculating total profits if conditions A and B are met.

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

(a)the profits of a trade carried on by a charitable company, and

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

(3)Subsection (1) does not apply in respect of—

(a)profits of a trade that are, apart from this section, exempt from corporation tax chargeable under Part 3 of CTA 2009, or

(b)post-cessation receipts that are, apart from this section, exempt from corporation tax chargeable under Chapter 15 of Part 3 of CTA 2009.

(4)Condition A is—

(a)in the case of the profits of a trade, that the profits are profits of an accounting period in relation to which the condition specified in section 482 (condition as to trading and miscellaneous incoming resources) is met, and

(b)in the case of a post-cessation receipt, that it is received in such an accounting period.

(5)Condition B is that the profits are, or (as the case may be) the receipt is, applied to the purposes of the charitable company only.

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

(7)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).