Market leading insight for tax experts
View online issue

Charities and trading subsidiaries

printer Mail

HMRC has updated its detailed guidance on charities in relation to direct taxation arrangements between charities and their trading subsidiary companies. The guidance makes it clear that any donation payment made by a subsidiary company to its parent charity which exceeds the subsidiary’s profits available for distribution is unlawful under the Companies Act 2006. No tax deduction will be given for unlawful distributions for accounting periods commencing on or after 1 April 2015. See Annex iv.

Issue: 1299
Categories: News