Who is liable for Corporation Tax

What activities are exempt from Corporation Tax?

HM Revenue & Customs (HMRC) uses the term 'exempt' to refer to certain activities carried out by organisations that are otherwise subject to Corporation Tax requirements.

These include:

  • trading profits generated by charities where those profits arise from - and are applied to - charitable purposes
  • profits from any fundraising events run by charities or voluntary organisations provided that those profits are applied to charitable purposes

HMRC defines charitable purposes as carrying out the primary purpose of the charity and/or directly serving the beneficiaries of the charity.

Other activities exempt from Corporation Tax include:

  • agricultural exhibitions or shows if the agricultural society that's running them uses any profits solely for the purposes of the society
  • the sale of permanent health insurance or sickness insurance by a friendly society
  • non-commercial activities connected with core health care delivery undertaken by NHS foundation trusts

Charities and Corporation Tax

Unincorporated organisations and Corporation Tax

Subjects covered in this guide

Developed with:
HM Revenue & Customs

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