Charity tax

The Charity Commission has issued guidance for trustees considering tax arrangements.

They have stated in the guidance that “Trustees will .... risk scrutiny and potential investigation by the commission if they engage in tax arrangements which exploit tax legislation artificially.”

They also say that the “use of such arrangements is likely to be in breach of trustees’ duties and responsibilities to act prudently and in the best interest of the charity.” The guidance also contains examples of previous arrangements that have been considered to be tax avoidance and in beach of trustees’ duties and responsibilities. 

You can access the Charity Commission guidance on charity tax relief via the related links aside.