I have a parent who is resident in a (very) profitable nursing home run by a private (for profit) limited company. The home runs raffles (I think without a licence), asks for donations and receives bequests in order to "fund" an activities schedule for the residents even though activities are included in the prospectus as part of the service offered. Are the receipts liable to corporation tax?
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Suspect it depends
On the exact circumstances. For example, are funds kept separate from business funds. Are the donations etc sought on behalf of some formal or otherwise residents' association. Is this activity profitable? If all amounts received are expended on activities, there would be no profit to tax.
VAT too
I suppose whether the activity is profitable not is beside the point. If it counts as earnings then one ought consider the VAT treatment of these payments. If they are not donations but instead payments for a service, then depending on whether or not it counts as elderly care/support it will have different VAT treatment.
Seems possible they're pocketing what should be output tax.
Ignore CT
issues to start with but an unregulated raffle is probably a lottery that needs to be regulated and by not doing an offence is committed
lottery
There is an exemption for lotteries run and drawn on the day - hence schools etc will run small lotteries using cloakroom tickets - it is the presold tickets types of lotteries that normally require the formal licence.
I sense you feel it is unacceptable for a profitable business to try and raise further funds in this way. Perhaps the real issue is how they separate out the funds and ensure they are applied for the purposes for which they purport to be raised. This is a general principle of law even before you get onto the law around charities etc.
Have you looked at their statutory accounts or asked if - as suggested above - they run a residents' club or similar which is all kept separate?
Duedil
As a PLC it should have been getting an audit - while not 100% certain, one hopes that is sufficient for things to be run by the book!
Now as a Ltd, it may still be above the audit threshold.
What does Duedil say about its audit?