Commentary on Sections Overview Section 524: Exemption for profits etc of charitable trades
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.