Liquidating dividend tax treatment

23-Mar-2018 20:14

liquidating dividend tax treatment-3

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In effect, expenditure made for exclusively charitable purposes. (The) Gambling Commission: the Gambling Commission was set up under the Gambling Act 2005.

Governing document: any document which sets out the charity’s purposes and, usually, how it is to be administered.

(The) 1988 act: the Income and Corporation Taxes Act 1988.

Ancillary trading: trading ancillary to a charity’s primary purpose, legally part of the charity’s ‘primary purpose trading’.

As well as being written in a clearer style, this guidance provides more practical advice on charities investing in and using trading subsidiaries, and reflects developments in the law and the commission’s experience of advising on the issues. The first is section 3, which deals with the position of charities which are themselves directly engaged in trading activities, or are considering doing so.

This is followed by section 4, which is about charities which have set up a trading subsidiary, or which may need to do so.

In some cases you will be unable to comply with your legal duties if you don’t follow the good practice.

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