'Major tax-avoidance scheme' has received no tax repayments, says HM Revenue & Customs

Disclosure rules mean that a charity, presumed to be the Cup Trust, 'doesn't work as a tax-avoidance scheme', according to Cathy Wilson of HMRC

Cup Trust's contact address
Cup Trust's contact address

No individual has received any tax repayments from a major "Gift Aid tax-avoidance scheme" believed to be the Cup Trust, an official at HM Revenue & Customs has confirmed.

Cathy Wilson, an official from HMRC, told the Charity Tax Group’s annual conference today that a circular Gift Aid tax-avoidance scheme had been reported to the revenue under Disclosure Of Tax Avoidance Schemes rules, introduced to prevent major tax-avoidance schemes from operating.

The rules mean HMRC cannot identify individual cases. But the scheme, which she referred to as "Project 2010", is presumed to be the Cup Trust.

Any individual attempting to claim tax relief is required under law to declare that they have used a scheme registered under Dotas. This means that any Cup Trust donors would have had to declare they had given to the charity, and HMRC would therefore know to refuse tax relief claimed by those donors.

"Our view is that this scheme doesn't work," said Wilson. "We haven't made any repayments of tax to anyone who's used this scheme."

The Cup Trust, which according to the Charity Commission's website makes grants to smaller charities that help children and young adults, raised £176.5m in private donations over two years but spent just £55,000 on good causes. It was criticised for being a tax-avoidance scheme by MPs on the Public Accounts Committee in March.

- See our Big Issue on The Cup Trust case

Have you registered with us yet?

Register now to enjoy more articles and free email bulletins

Already registered?
Sign in

Latest Jobs

RSS Feed

Third Sector Insight

Sponsored webcasts, surveys and expert reports from Third Sector partners


Expert hub

Insurance advice from Markel

How bad can cyber crime really get: cyber fraud #1

Promotion from Markel

In the first of a series, we investigate the risks to charities from having flawed cyber security - and why we need to up our game...

Third Sector Logo

Get our bulletins. Read more articles. Join a growing community of Third Sector professionals

Register now