Corporation Tax Act 2010 section 483

Exemption for profits from fund-raising events

Section 483 provides a corporation tax exemption for profits arising from qualifying fund-raising events held by charitable companies and certain voluntary organisations.

• Profits from fund-raising events that qualify as VAT-exempt under Group 12 of Schedule 9 to the Value Added Tax Act 1994 are excluded from the calculation of total profits for corporation tax purposes.
• The exemption applies both to charitable companies and to voluntary organisations that are qualifying bodies for fund-raising event purposes under the VAT rules.
• To benefit from the exemption, the profits must be applied to charitable purposes or transferred to a charity, and a formal claim must be made.
• The VAT exemption covers events organised primarily to raise money for the charity itself or for other charities, subject to limits on the number of events held at the same location in any given year.