HMRC has revised its guidance on the ‘fit and proper persons’ test for charity managers which must be met before a charity can meet the management condition in FA 2010 Sch 6. The legislation does not define ‘fit and proper persons’.
The legislation gives too much discretion to HMRC and ‘imposes costly and additional compliance burdens on every charity’ the ICAEW Tax Faculty has said. The Faculty’s concerns include a ‘the lack of any objective definition or evidence-based test which can be objectively assessed by a court or tribunal’.
