The advantages of registering a charitable trust company in the UK: if you're starting a limited company, then you should look at the advantages of registering a charitable trust. It isn't as complicated as you might think. Our company offers same-day charitable company registration with absolutely no paper forms to fill out. You can have a charitable trust up and running today.
A charitable trust company registration offers many advantages over a traditional private company and is exceptionally tax efficient. Essentially charitable trust company registration offers complete protection from income tax, which is an inevitable part of life for individuals and companies. Both capital gains tax and council tax can also be avoided with charitable trust company registration and one of the few tax liabilities is VAT.
With a charitable trust the granter can reduce his taxable estate by transferring assets from a company or individual's name and donating them to the trust. Split-interest charitable trusts even allow the grantor to retain an official interest in the asset on paper.
As well as the trust itself, those who donate to it through Gift Aid don't have to pay tax on that amount and other companies limited by guarantee who make a donation to the trust can reclaim the taxable part of the donation from HMRC. Donors can even avoid capital gains tax when they donate a property that has appreciated in value to the trust.
So there are a vast number of ways that the trust can be used as an effective vehicle to streamline your tax affairs. Charitable trusts are administered by trustees, who are not officially linked to the beneficiaries, too. This gives the trustees a great deal of freedom to run the trust and a comforting level of legal protection for all involved.