New HMRC reporting obligation for charities
Charities which provide grants and receive more than half of their income from financial investments in any year, are being advised of the need to inform HM Revenue and Customs (HMRC).
The Charity Commission has warned charities that income from financial investments, together with investments managed in whole or in part by a broker, fund manager, independent financial adviser, or wealth manager may require further checks on grant recipients in a report to HMRC, in order to meet the requirements of the ‘Common Reporting Standard’.
The Common Reporting Standard is a global agreement which has been designed to fight offshore tax evasion by sharing of financial information between tax administrations.
At Moore Thompson, our specialist Charities Team can provide support on a wide range of tax, accounting, financial and compliance matters. For more information about our services, please contact us.