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Charitable disposal

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24 August 2010

Issue: 4269 / Categories: Forum & Feedback , Capital Gains

A charitable company has disposed of several properties. Does the general exemption for income extend to gains?

I have a new client that is a charitable company limited by guarantee. The company has made a number of property disposals (capital not trading) in the past year. It has an accounting date of 31 May.

This is the first charitable company that I have dealt with. Previously all my charitable clients were trusts.

I initially assumed that the company’s disposals would be exempt from tax (corporation tax on gains) but looking at TCGA 1992 s 256 it is not immediately clear that it extends to companies.

Can readers help?

Are there any other pitfalls that I ought to be aware of or can I continue to treat contributions to the company and income and gains of the company in the same way as I would for a charitable trust?

Query 17 654 – Homer

Reply from Thommo

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Charitable disposal

© Copyright LexisNexis 2024. All rights reserved.

24 August 2010

A charitable company has disposed of several properties. Does the general exemption for income extend to gains?

I have a new client that is a charitable company limited by guarantee. The company has made a number of property disposals (capital not trading) in the past year. It has an accounting date of 31 May.

This is the first charitable company that I have dealt with. Previously all my charitable clients were trusts.

I initially assumed that the company’s disposals would be exempt from tax (corporation tax on gains) but looking at TCGA 1992 s 256 it is not immediately clear that it extends to companies.

Can readers help?

Are there any other pitfalls that I ought to be aware of or can I continue to treat contributions to the company and income and gains of the company in the same way as I would for a charitable trust?

Query 17 654 – Homer

Reply from Thommo

...

If you or your firm subscribes to Taxation.co.uk, please click the login box below:

If you are not a subscriber but are a registered user or have a free trial, please enter your details in the following boxes:

Subscribe Now...

Alternatively, you can register free of charge to read a limited amount of subscriber content per month.

Once you have registered, you will receive an email directing you back to read this item in full.

Please reach out to customer services at +44 (0) 330 161 1234 or 'customer.services@lexisnexis.co.uk' for further assistance.

Issue:

4269

Categories: Forum & Feedback [1] , Capital Gains [2]

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