Can a charity finance its own trading subsidiary?

I am working with a Charity who want to set up a social enterprise trading arm, they have asked if they can charge interest to the social enterprise as they are basically supporting it 100% financially prior to the social enterprise making any money. I am unsure if they can, but think that they might be able to charge possible management costs or admin support?

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c.cattell's picture

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Charlie Cattell is a specialist in legal and governance matters relating to social enterprises, charities and voluntary organisations, assisting a wide range of groups with legal structures, organisational management, and regulatory issues.