Changes to the tax rules for charities and Community Amateur Sports Clubs (CASCs) made by HMRC earlier this year were intended to offer UK tax reliefs to EU charities and to allow these donations to qualify under the Gift Aid scheme.
 
These changes also alter the rules about who is allowed to manage the charity. For tax purposes, those involved in managing the charity must be ‘fit and proper’ and HMRC have devised a test to establish who is and who isn’t.
 
The 'fit and proper persons' test is concerned with ensuring that charities are not managed or controlled by individuals who present a risk to the charity’s tax position.
HMRC have issued guidance on this test for managers, which is important to read if you are involved in running a charity or a CASC. If you would like further help or advice, please do get in touch.
 

Francis Clark has offices in Exeter, Plymouth, Salisbury, Taunton, Tavistock, Torquay and Truro. Francis Clark is the winner of the ‘Auditor of the Year - Mid Tier’ in the National Financial Directors’ Excellence Awards 2011, and LexisNexis Best General Tax Practice Award 2009. More information is available by logging on at our Online Information Centre