½Û×ÓÊÓƵ

Provided that certain conditions are met, the following income is not taken into account in calculating the total income of a charity¹:

1. Ìý

   •ÌýÌýÌýÌý the profits of a trade carried on by a charity

2. Ìý

   •ÌýÌýÌýÌý amounts treated as adjustment of income of a charitable trust under ITTOIA 2005, s 228 in respect of a trade carried on by the trust, and

3. Ìý

   •ÌýÌýÌýÌý post-cessation receipts arising from a trade carried on by a charity which are received by the trustees/company (or to which they are entitled) (see B2.801)

For the exemption to apply, conditions A and B must be satisfied².

Condition A is, in the case of the profits of a trade, that the profits are profits of a tax year/accounting period in relation to which the trade is charitable trade. In the case of an amount treated as an adjustment, condition A is that the amount arises in the tax year in relation to which the trade is a charitable trade and in the case of a