Charity trading companies: relationship with parent charity | Practical Law

Charity trading companies: relationship with parent charity | Practical Law

Guidance on how to structure the relationship between a charity and a wholly-owned trading company. The note looks at how to ensure that the relationship is at arm's length, the requirement for the parent charity to recover the cost of resources shared with the trading company, the tax implications of sharing resources, and the rules that apply if a charity trustee is to be a paid director or employee of the trading company.

Charity trading companies: relationship with parent charity

Practical Law UK Practice Note w-018-1720 (Approx. 10 pages)

Charity trading companies: relationship with parent charity

MaintainedEngland, Wales
Guidance on how to structure the relationship between a charity and a wholly-owned trading company. The note looks at how to ensure that the relationship is at arm's length, the requirement for the parent charity to recover the cost of resources shared with the trading company, the tax implications of sharing resources, and the rules that apply if a charity trustee is to be a paid director or employee of the trading company.