Capital Gains tax on not-for-profit Association

Capital Gains tax on not-for-profit Association

Didn't find your answer?

Think I already know the answer to this, but I have a client (a Company ltd by guarantee) applying for a Corporation tax exemption on the grounds of being a not for profit club funded almost entirely from mutual trading.

They are selling their premises to raise funds to continue and will rent in future so we shortly expect a decent gain.

Charities are exempted from CGT if they use the funds for "Charitable purposes", so I'm wondering if an exempted not for profit organisation (but not a registered Charity) selling its only property to raise funds for its continued work to benefit members would be subject to tax?

Any answers?

Replies (1)

Please login or register to join the discussion.

avatar
By Chris Smail
11th Jun 2012 16:39

What sort of club is it?

Would it be possible to become charitable, eg amateur sport, village hall.?

If so worth considering as otherwise I believe Gain will be taxed.

Thanks (0)