Charities in Scotland

We are incrementally developing a new set of content on Scottish private client law for Scottish practitioners. The content will provide an essential resource for Scottish practitioners, as well as practitioners in England and Wales with clients who need advice on cross-border issues.

Aside from the historic law on public trusts, the greater part of the law on charities in Scotland has long been entwined with UK tax law to the extent that, until 2006, the recognition of Scottish charities was a function of HMRC. Modest reforms to charity law in the 1990s, eg the Law Reform (Miscellaneous Provisions) (Scotland) Act 1990 and certain sections of the Charities Act 1992, and the Charities Act 1993 changed the ways in which charities and public trusts were reorganised and monitored.

Major changes to charity law in Scotland were introduced by the

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Question of the week: An interim distribution was made from a deceased's estate to A (30%), B (30%), and C (30%), and D (10%). A, B, and C now wish to keep the deceased's house, which may involve repayment of some or all of the interim distribution. B also wants to buy out C at the same time. A is the trustee of a discretionary trust. D consents to the proposal. What are the SDLT implications of the proposal? Are there any other tax consequences?

This Q&A considers whether, if an interim distribution was made from a deceased's estate to A (30%), B (30%), and C (30%), and D (10%). A, B, and C now wish to keep the deceased's house, which may involve repayment of some or all of the interim distribution. B also wants to buy out C at the same time. A is the trustee of a discretionary trust. D consents to the proposal. What are the SDLT implications of the proposal and if there are any other tax consequences.

Upper Tribunal rules on application of purpose tests in the context of Transactions in Securities regime (Osmond and Allen v HMRC)

Tax analysis: In Osmond and Allen v HMRC, the Upper Tribunal (UT) allowed the taxpayers’ appeal, holding that they did not necessarily have a main purpose of obtaining ‘an income tax advantage’ under the Transactions in Securities (TIS) regime simply by virtue of having a main purpose of obtaining the benefit of Enterprise Investment Scheme (EIS) disposal relief. Obtaining EIS relief from capital gains tax created an ‘income tax advantage’ for the purposes of section 687 of the Income Tax Act 2007 (ITA 2007). The First-tier Tax Tribunal (FTT) found as a matter of fact that the taxpayers did not have the subjective purpose of obtaining this income tax advantage. Surprisingly, however, the FTT held that because they had a main purpose of obtaining the EIS benefit (notably, a capital gains tax), it followed that they had a main purpose of obtaining an income tax advantage. Concluding that the FTT had erred as a matter of law, the UT held that the taxpayers’ desire to crystallise their EIS disposal relief did not mean that they necessarily had a main purpose of obtaining an income tax advantage. Written by Susanna Breslin, barrister at 11 New Square.

The Supreme Court tweaks Etridge (Waller Edwards v One Savings Bank plc)

Property Disputes analysis: English property law periodically produces epoch-making decisions of the highest court. In years to come, Waller Edwards v One Savings Bank plc may well become such a decision. It enjoys the respectable jurisprudential lineage of three famous House of Lords’ decisions: Barclays Bank v O’Brien, CIBC Mortgages v Pitt, and Royal Bank of Scotland v Etridge, but it also applies established principles in a novel way. Written by Marc Beaumont, Windsor Chambers.

OSCR announces new trustee information requirements under Scottish charity law reforms

The Office of the Scottish Charity Regulator (OSCR) has announced new requirements for Scottish charities to submit detailed trustee information through OSCR Online from 30 June 2025, as mandated by the Charities (Regulation and Administration) (Scotland) Act 2023 (C(RA)(S)A 2023). Under these new requirements, charities must submit comprehensive trustee details—including full name, home address, email address, telephone number, date of birth, and date of original appointment—through designated OSCR Online charity users. This information is vital for OSCR’s regulatory oversight, with the data being securely stored for two years after a trustee’s departure. From early 2026, only the first and last names of trustees will be published on the Scottish Charity Register, unless an exemption is granted for personal safety or security concerns.