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Updated guidance for charities' trading operations - Regulator revises guidance and helps charities optimise their trading operations
Charities receive a significant proportion of their income from their trading arms. The Charity Commission has today published its revised guidance on charities and trading to help charities avoid the potential risks of trading and get the most out of their trading activities, while also complying with their legal and fiscal requirements.
Trustees, trade and tax - how charities may lawfully trade is available on the Commission's website at http://www.charitycommission.gov.uk. Developed in response to the Better Regulation Commission's call for clear guidance on the subject, and with input from HMRC and representatives from key charities, the guidance provides clear answers to the questions most commonly asked by charities. The guidance reflects the latest tax and VAT position and also sets out a more flexible policy for funding and investing in trading companies.
The Commission's Chief Executive, Andrew Hind, said:
"Trading can present real risks for charities, but it also offers significant rewards. We've produced this guidance to try and make it as easy as possible for charities looking to trade, or to set up a separate trading subsidiary, to avoid the pitfalls and reap those rewards. Talking to charities that are already trading successfully has helped us make sure the guidance gives a practical approach to the real-life issues that charities might face and to help make sure that charities get the structure of their trading operations right."
Notes to Editors
1. The Charity Commission is the independent regulator for
charitable activity in England and Wales. See http://www.charitycommission.gov.uk
for further information or call our contact centre on 0845 300
2. The Better Regulation Commission called for clearer guidance on the subject of trading in its report Better Regulation for a Civil Society.
For further information please contact: Chris Kiggell on 020 7674 2332