Areas that are non-charitable and therefore could give rise to a tax charge include:
- the provision of consulting;
- testing facilities; or
- sales of goods that are not "educational".
Where a department undertakes such activity and it generates a profit, the tax department should be consulted. In some cases, it will be necessary for the activity to be transferred to the University's trading company: Cambridge University Technical Services Ltd (CUTS). The effect of routing activity through CUTS is to remove the tax charge.
Exemption from Corporation Tax also covers non-charitable activity where the activity is undertaken by the beneficiaries of the charity. The beneficiaries of the University are students so any profit making activity in the University that is undertaken by students is exempt from the tax.