§ Mr. Kershawasked the Chancellor of the Exchequer whether he is aware that many bodies devoted to charitable purposes but which are not registered as charities or not sub-committees of local authorities are being assessed for Corporation Tax on the moneys they raised for charitable purposes; whether he is satisfied with the operation of this tax in this respect; and whether he will make a statement.
§ Mr. Harold LeverThe fact that a body raises funds for charitable purposes234W does not entitle it to exemption from Corporation Tax; and exemption from Corporation Tax of the trading profits of a charity is due only if (a) the trade is exercised in the course of carrying out a primary purpose of the charity, or (b) the work in connection with the trade is mainly carried on by beneficiaries of the charity.
If the hon. Member has a particular case in mind and will let me have details about it, I will have it looked into and will write to him.