When Do Academy Trusts Need A Trading Subsidiary?

What circumstances mean an academy trust may need to set up a subsidiary company to carry out trading activity, in order to comply with charity law.

A recent blog post published by Companies House highlighted the work of a social enterprise set up by school pupils, which helps schools generate income by hiring out their facilities to individuals and local groups.  This is just one strategy which academy trusts may pursue to generate extra income, as highlighted in this earlier Wrigleys article. 

Such activities may be classed as trading, particularly where services are provided alongside the facilities, such as a cleaning, catering or security.  Where this is the case, an academy trust may need to set up a trading subsidiary in order to undertake them.