In most cases, it will depend on the type of charity, its charitable objects, the proposed activity and expected level of income.
In terms of the retail Gift Aid scheme used in many charity shops, the use of a trading subsidiary to run the shops currently allows the use of a higher £1,000 threshold of proceeds before having to notify the supporter (limited to £100 where the charity runs the shops).
Our Charity Tax team has put together some of the key advantages and disadvantages of the subsidiary structure for consideration, which was recently published as part of Charity Retail Association’s newsletter.
Should this be of interest to you, please view our fact sheet for more information, or email our Charity Tax Partner Luke Savvas.
Pros and cons of using a trading subsidiary