Commentary on Sections Overview Section 526: Exemption for profits etc of small-scale trades
1578.This section provides an exemption for trading income, adjustment income and post-cessation receipts in circumstances where the amount of income which can be exempted under this section and the next is small, and provided the income is applied to the purposes of the charitable trust. It is based on section 46 of FA 2000.
1579.The exemption provided by this section applies only if the income is not otherwise exempt. So profits from primary purpose trading (including related adjustment income and post-cessation receipts) are exempt under section 524, whereas profits from a non-primary purpose trading activity (including related adjustment income and post-cessation receipts) may be exempt under this section.
1580.The section provides a statutory exemption for adjustment income. See Change 92 in Annex 1 and the commentary on section 524.
1581.The source legislation restricts the exemption to income from trades carried on wholly or partly in the United Kingdom. This restriction has been dropped. See Change 94 in Annex 1.
1582.The condition about the level of the income is in section 528.