Income Tax Act 2007 section 529

Exemption for profits from fund-raising events

Section 529 exempts from income tax the trading profits that a charitable trust earns from qualifying fund-raising events, provided the profits are used for charitable purposes.

• Trading profits of a charitable trust from a VAT-exempt fund-raising event are excluded from the charity's total income calculation
• The exemption only applies where the profits are either applied for charitable purposes or transferred to another charity
• A qualifying event is one where the charity's supply of goods and services would be exempt from VAT under Group 12 of Schedule 9 to the Value Added Tax Act 1994, which covers fund-raising events by charities and other qualifying bodies
• The VAT rules define what counts as a qualifying event and limit the number of events a charity can hold at the same location in any given year