Charities are subject to important charity law and tax rules in relation to trading activities and we provide advice on structuring start-ups, setting up trading subsidiaries, intra-group transfers, charity retail and advising on start-up funding and shared resources.
Your status as a charity does not mean that all of your income is automatically exempt from Corporation Tax or VAT. There are complex rules regarding trading activities by charities, and we regularly advise charities in relation to VAT on the supplies they make and in relation to setting up trading subsidiaries for certain trading activities for tax efficiency.
Our team of tax lawyers are fully conversant with the tax and VAT issues that might affect our charity clients. We help our clients make the best use of tax efficiencies and savings through strategic advice tailored specifically to their individual requirements. We have particular expertise advising on tax issues in connection with selling land for development, construction projects, sponsorship arrangements and trading.
We offer comprehensive legal advice to our charity retail clients on trading, including structuring start-ups, setting up trading subsidiaries, intra-group transfers, and advising on Gift Aid for charity shops, including structuring requirements to satisfy HMRC conditions for Method B.
When setting up a trading subsidiary, it is essential to put in place the appropriate arrangements between the charity and its subsidiary. We regularly set up trading subsidiaries and draft all ancillary documentation, including shared resources agreements and debentures.
Our Experience
Birketts advises East Anglia’s Children’s Hospices on charity retail.
Since 2013 we have acted for East Anglia’s Children’s Hospices (EACH) in respect of all of its new charity shop leases and management of its retail portfolio of circa 50 charity shops. EACH delivers all-encompassing, lifelong care that includes a comprehensive range of services to support both bereaved and non-bereaved families. The charity’s aim is to ensure the best possible quality of life for babies, children, and young people.
Key Contacts
