Part 11Charitable companies etc

Chapter 3Other exemptions

Exemptions

483Exemption for profits from fund-raising events

(1)

The profits of a trade carried on by a charitable company are not taken into account in calculating total profits so far as they—

(a)

arise from an event that is VAT-exempt in relation to the company, and

(b)

are applied to charitable purposes or transferred to a charity.

(2)

The profits of a trade carried on by a body to which subsection (3) applies are not taken into account in calculating total profits so far as they—

(a)

arise from an event that is VAT-exempt in relation to the body, and

(b)

are applied to charitable purposes or transferred to a charity.

(3)

This subsection applies to any voluntary organisation that is a qualifying body for the purposes of Group 12 of Schedule 9 to the Value Added Tax Act 1994 (fund-raising events by charities and other qualifying bodies).

(4)

The exemptions under this section require a claim.

(5)

For the purposes of this section an event is VAT-exempt in relation to a person if the supply of goods and services by that person in connection with the event would be exempt from value added tax under Group 12 of Schedule 9 to the Value Added Tax Act 1994.