Charity Tax Relief on Trading Profits
Charities can carry out trading activities directly related to their charitable aims and objectives, and/or can trade as a way of raising money provided it is on a small scale and presents no significant risk to the charity’s assets.
Profits from trading activities may be taxable but there are some exemptions, including:
primary purpose trading
activities carried out by charity beneficiaries
profits from fundraising events
profits from charity lotteries
If your group is not exempt, you could consider conducting all or part of your activity through a subsidiary trading company and transfer some or all profits of the company back to the charity as a donation, in which case the charity will then be able to re-claim tax.