Income Tax Act 2007 section 528

Condition as to trading and miscellaneous incoming resources

Section 528 sets out the condition relating to the level of a charitable trust's trading and miscellaneous incoming resources that must be satisfied for the small-scale trade and miscellaneous income exemptions under sections 526 and 527 to apply.

• The condition is met if the combined trading and miscellaneous incoming resources do not exceed the requisite limit, or if the trustees reasonably expected at the start of the tax year that they would not exceed it.
• Trading incoming resources include gross receipts from any non-exempt trade (one whose profits would not otherwise be exempt), plus any adjustment income or post-cessation receipts from such a trade.
• Miscellaneous incoming resources are the gross receipts taken into account in calculating non-exempt miscellaneous income or losses — that is, income chargeable under provisions listed in section 1016 that would not otherwise be exempt under sections 526 or 527.
• The requisite limit is 25% of the charitable trust's total incoming resources for the tax year, subject to a floor of £8,000 and a ceiling of £80,000.