HMRC update their guidance on the “Fit and Proper Persons” test

HMRC has updated its Guidance on the “fit and proper persons” test. Charities are required to confirm that those with general control and management of the administration of the charity (which may include trustees and staff employed in certain senior roles) are “fit and proper persons” before HMRC will permit a charity to claim tax reliefs. The principal changes, which would appear to be a result of the Cup Trust debacle, are that a charity manager or person in control cannot have either:

• Used a tax avoidance scheme featuring charitable reliefs or used a charity to facilitate such avoidance; or
• Been involved in designing and/or promotion of tax avoidance schemes.

IBB Solicitors’ specialist Charities team has a wealth of experience in delivering practical commercial advice to charities and not for profit organisations and those who work with them. For advice, contact a charity lawyer. Call us on 01895 207809 or email charities@ibblaw.co.uk.