Charity regulation

With over 160,000 registered charities in England and Wales a formal supervisory system is essential. The Charity Commission fulfil that role and are responsible for ensuring that charities are registered and run correctly. They are responsible for all aspects of registration and general regulation.

Charity registration—when to register

The Charity Commission keep a register of all charities that they are required to supervise. There is an obligation on most charities to register and it is the trustees' obligation to ensure that all documents are submitted in order to facilitate this.

There is a continuing obligation on the trustees to consider not only whether their institution is initially charitable but also to regularly investigate its continuing activities to ensure charitable status.

The Charity Commission treats excepted and exempt charities differently to other charitable institutions. For the practitioner, it is important to note that differences as both these forms of charitable organisation are treated differently again.

The registration of an organisation is conclusive proof of its charitable status. However, a refusal to register does not necessarily mean that the organisation is not charitable. If an organisation is refused registration

To view the latest version of this document and thousands of others like it, sign-in with LexisNexis or register for a free trial.

Powered by Lexis+®
Latest Private Client News

Market value, distributions and notional transactions—key SDLT lessons from Tower One St George Wharf Ltd v HMRC

Tax analysis: In Tower One St George Wharf Ltd v HMRC, the Court of Appeal considered the basis on which stamp duty land tax (SDLT) should be assessed and whether that resulted in SDLT being paid on the market value, the actual consideration paid, or on some other basis for a complex transaction within a corporate group. The taxpayer argued that the ‘Case 3’ exception under section 54(4) of the Finance Act 2003 (FA 2003) applied, which would result in SDLT being charged on the actual consideration. HMRC argued that the exception did not apply, which would result in SDLT being paid on the market value of the property. Alternatively, HMRC argued that if the exception did apply then the anti-avoidance provisions at section 75A FA 2003 applied, potentially resulting in an even higher SDLT charge. The Court of Appeal held that although the Case 3 exception applied, the anti-avoidance provision in FA 2003, s 75A also applied. This resulted in SDLT being assessed on an aggregate amount that was even higher than the property's market value (although HMRC did not seek to increase its assessment beyond market value). Therefore, the appeal was dismissed. As explained by Jon Stevens, partner, and Rory Clarke, solicitor, at DWF Law LLP, this decision deals with the interaction of a number of complex SDLT provisions and clarifies the SDLT provisions relating to transfers to connected companies and the SDLT anti-avoidance provisions, with implications for corporate structuring and tax planning.

View Private Client by content type :

Popular documents