New Charity Commission guidance on charity tax reliefs

The Commission has published a policy paper outlining charity trustees’ duties in light of recent cases of tax avoidance. It explains the difference between trustees’ duty to act in the best interests of the charity (and ensure their charity has the maximum income possible) and participating in schemes that evade tax.

Tax arrangements for charities

The new guidance confirms that engaging in tax arrangements designed for charities, such as gift aid and using wholly owned subsidiaries, is prudent tax planning. However, charities need to consider carefully when prudent tax planning becomes tax avoidance.

Section 2.1 of the paper outlines a number of considerations which trustees should take into account when considering entering into tax planning arrangements.

For more information or to discuss your requirements contact one of our charity law solicitors today on 01895 207809 or email charities@ibblaw.co.uk.