TRUSTEES' REPORT AND ACCOUNTS 2024 79
21. Subsidiary company undertakings continued
a) RSPCA Trading Limited (RTL) (Company No: 01072608)
Since 1991 this company has been used for direct sales, royalties and special events. The issued share capital is owned by the RSPCA and, where
company law allows, all potentially taxable profits, after recovery of available losses, are transferred to the RSPCA by a qualifying distribution by way
of a Deed of Covenant.
b) RSPCA Assured Limited (Company No: 02723670, Charity Nos: 1059879, SC038199)
Freedom Food Limited incorporated as a private company limited by shares (registered company number 02723670) in 1992, and began trading in 1994.
On 17 May 2023 the company name changed to RSPCA Assured Limited in order to benefit from the consumer trust in the RSPCA brand as advocating
for higher animal welfare.
c) RSPCA Europe
RSPCA Europe is an international non-profit association constituted in Belgium. The RSPCA UK charity agreed to set up RSPCA Europe following the
UK's exit from the European Union and will be used to lobby and take part in EU activities.
22. Post-balance sheet event
After the year end the RSPCA received two significant donations, which have been deemed to be non-adjusting, post-balance sheet events. There was
a restricted donation for £12m and one donation that has resulted in the creating of an endowment for £6m. Both were not recognised at year end as the
income-recognition criteria was not satisfied as at 31 December 2024.
23a. Branch legacies
During 2024, the RSPCA received £10.5m (2023: £10.7m) in legacies payable to branches. These are not shown in the statement of financial activities.
The sums received are paid to branches as soon as the recipient branch has been identified.
23b. Legacies notified
As at 31 December 2024, the RSPCA had been notified of 18 (2023: 19) high-value legacies (over £0.5m) within the year with an estimated value of £13m
(2023: £13m). Interim payments of £5m have been received within 2024 and recognised as legacy income within 2024. Out of the remaining £8m, £5.5m
has been accrued into 2024 as it meets the legacy accrual recognition criteria as per Note 1. £2.5m has not been accrued into 2024 as there is no grant
of probate dated prior to 31 December 2024.
There are 430 cases notified in 2024 (excluding life interest and life interest residuary), which it has not been possible to value, and therefore these cases
have not been accrued into 2024. In 2023, there were 479 such cases.
24. Related party transactions
RSPCA branches are separately registered charities. The RSPCA has an arm's-length trading relationship with most branches. Grants are made to branches
when charitable objectives delivered by the branch would be enhanced. Branches are represented on the regional boards whose chairs are represented on
the Branch Affairs Committee, which reports to the RSPCA Board of Trustees. There were no branches in Board trusteeship during 2024 or 2023.
The RSPCA paid salary-related costs to RSPCA Assured Ltd employees on behalf of RSPCA Assured Ltd and was reimbursed for the full amount.
RTL did not accrue a qualifying distribution to be paid to the RSPCA this year (2023: £285k) and made sales to the RSPCA of £117k (2023: £354k).
During 2024, the RSPCA re-charged overheads to RTL of £489k (2023: £394k) and to RSPCA Assured Ltd of £455k (2023: £403k).
The RSPCA charges its subsidiaries a quarterly management re-charge fee for subsidiary usage of shared overhead costs to ensure that all intragroup
transactions take place on an arm's-length basis. The methodology of calculating the management fee was reviewed in 2023 following an evolution
of the activities of the entities within the group since the last review date. A new methodology was approved in 2023 by the RSPCA Board of Trustees,
the RTL Board of Directors and RSPCA Assured's Board of Trustees. All re-charges are made on an arm's-length basis.
At the year end the RSPCA was owed £639k (2023: £1,144k) by RTL and £250k (2023: £418k) by RSPCA Assured Ltd.