Corporation Tax Act 2010 section 482

Condition as to trading and miscellaneous incoming resources

Section 482 sets out the condition regarding the level of trading and miscellaneous incoming resources that a charitable company must satisfy in order to benefit from the small-scale trade and miscellaneous income exemptions.

• A charitable company's combined non-exempt trading and miscellaneous incoming resources must not exceed a limit of 25% of total incoming resources, subject to a floor of £8,000 and a ceiling of £80,000 (proportionately reduced for short accounting periods).
• The exemption is still available if, at the start of the accounting period, the company reasonably expected it would stay within the limit, even if it ultimately did not.
• Trading incoming resources cover gross receipts from non-exempt trades (those whose profits are not already exempt under another charity exemption) and any post-cessation receipts from such trades.
• Miscellaneous incoming resources cover gross receipts from non-exempt miscellaneous income sources — that is, income or gains chargeable to corporation tax that would not otherwise be exempt under the charity provisions.