Charity Trading Rules

In the recent budget a measure was announced to increase the small trading tax exemption limits for Charities that apply to trading that does not relate to a Charity’s primary purpose, i.e. a Charity Shop selling goods to raise money as distinct from say a Christian Book Shop which sells the Charity’s products, i.e. charitable activities.

The new measures will increase the rates as follows:

  1. Charity income under £32K, the maximum primary purpose trading is £8K.
  2. Charity income £32K to £320K the maximum primary purpose trading is 25% of income.
  3. Over £320K the maximum figure is £80K.