1567.This section sets out the exemption for trading profits of charitable trusts. It is based on section 505(1) of ICTA.
1568.The exemption applies only if the trade is a charitable trade. This is defined in section 525.
1569.This section makes it clear that adjustment income (arising from a charitable trade) is exempt, in line with practice. Adjustment income is defined by reference to ITTOIA. See Change 92 in Annex 1.
1570.This section also makes it clear that post-cessation receipts (arising from what was a charitable trade) are exempt, in line with practice. Post-cessation receipt is defined by reference to ITTOIA. See Change 92 in Annex 1.
1571.Change 92 also affects sections 525, 526, 531 and 539.
1572.Exemptions for small-scale trades are dealt with separately in section 526.
Commentary on Sections Overview Section 524: Exemption for profits etc of charitable trades