Church taking a bath on London property investment...

[Res Ipsa]

OK Dr. Steuss, at the risk of breaking both of our brains, here is the explanation: https://www.adlercolvin.com/revenue-gen ... s%20income.

TL/DR, it all boils down to a smell test. Capital gains on real estate bought and sold by a charitable organization are generally not taxable. If PRI began to engage in lots of buying and selling with tons of for profit commercial development, there would be a problem. If for-profit developments are spun off into taxable entities, PRI can own those entities without losing its tax free status. As far as leased property goes, as long has the amount of lease payments does not depend on the profitability of the tenant, the lease revenue will not change the entity's tax-free status.

I don't know how it works in England.