Gift Aid £46m Tax Avoidance Scheme under the spot light – what is your view? 12


Give and Receive Sharing Support Helping Others

ONE OF THE UK’s largest charities was acting as a front for a tax avoidance scheme which abused Gift Aid incentives in order to help donors avoid £46m in tax.

The Cup Trust, a registered charity, raised around £176m over two years from 2010 – more than the Royal Society for the Protection of Birds, the British Heart Foundation and the Salvation Army – yet only £55,000 was put towards its stated cause of “improving the lives of young children and adults”.

For example, someone donating £1m to the Cup Trust could expect to recoup most of their money and still be entitled to between £250,000 and £375,000.The Cup Trust – which has not acted illegally – would purchase huge annual quantities of gilts, or government bonds. Those bonds were then reportedly sold on for a nominal sum through third parties to investors. The investors then sold them on at market value and donated the proceeds to the charity.

The head of Britain’s charity regulator will be hauled before MPs next month to explain how wealthy investors were able to use a charity scam to avoid £46 million in tax.

William Shawcross, the new head of the Charity Commission, will be questioned by the Public Accounts Committee about the Cup Trust, a charity exposed by The Times yesterday as a front for massive tax avoidance. MPs are also expected to ask him about other examples of charity rules being abused for tax purposes.

There are further articles at

http://www.thetimes.co.uk/tto/money/tax/article3674853.ece#commentsStart

http://www.mirror.co.uk/news/uk-news/charity-tax-avoiders-cup-trust-1568343

What would you do to stop this avoidance scheme? or do you think if its legal it’s ok?

steve@bicknells.net

 

12 comments

  1. Whats up very cool blog!! Man .. Beautiful .. Superb .
    . I’ll bookmark your web site and take the feeds also? I’m happy to find
    so many useful info right here in the submit, we’d like develop more techniques on this regard, thank you for sharing. . . . . .

  2. I blog quite often and I genuinely thank you for your
    information. This article has truly peaked my interest.
    I’m going to bookmark your site and keep checking for new
    information about once per week. I opted in for your Feed too.

  3. Good day very nice blog!! Man .. Beautiful .. Wonderful ..
    I will bookmark your web site and take the feeds also?
    I am satisfied to seek out a lot of helpful information right here in the post, we
    need work out extra strategies on this regard, thanks for sharing.
    . . . . .

  4. Hi! I could have sworn I’ve been to this blog before but after browsing through a few of the posts I
    realized it’s new to me. Regardless, I’m certainly delighted I came across it and I’ll be book-marking it and checking
    back frequently!

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s