UK banks raise £234bn through charity trust scheme
Major banks create charitable trusts to raise funds but have not donated to the charities
Major banks create charitable trusts to raise funds but have not donated to the charities
The UK’s major banks have raised tens of billions of pounds in funds by
exploiting a loophole in the charity trust laws.
Concerns had been raised over Northern Rock’s charitable trust Granite,
through which the bank raised funds against its mortgages but has not paid
anything to its nominated charity.
It has now been revealed that 11 other major high street financial
institutions are operating similar schemes, through which they have raised funds
on the back of £234bn of home loans, reported
The
Guardian.
The use of the trusts is controversial, as the trusts are kept off the
balance sheet.
Most do not name the charity that is the supposed beneficiary. Only Abbey and
Bradford & Bingley said they had had made donations to their charity.
Treasury select committee chairman John McFall said that if charities’ names
were being used then it must be clear who they were, ‘otherwise it could be seen
as identity theft’.
Further reading:
The numbers you crunch tell a story. Your expertis...
16yEmbracing user-friendly AP systems can turn the tide, streamlining workflows, enhancing compliance, and opening doors to early payment discounts. Read...
View articleOrganisations can enhance their financial operations' efficiency, accuracy, and responsiveness by adopting platforms that offer them self-service cust...
View articleIn a world of instant results and automated workloads, the potential for AP to drive insights and transform results is enormous. But, if you’re still ...
View resourceDiscover how AP dashboards can transform your business by enhancing efficiency and accuracy in tracking key metrics, as revealed by the latest insight...
View articleThe amount of tax saved by businesses through HMRC’s Patent Box scheme has increased by 23% over the last five years, from £1.14 billion in 2017/18 to...
View articleUK Chancellor Jeremy Hunt has hinted at the possibility of further tax cuts in the upcoming spring Budget, during his time at the World Economic Forum...
View articleThe legislation, which introduces a global minimum tax of at least 15% for multinational enterprises, aims to limit tax competition and ensure large c...
View articleThe upcoming tax changes in 2024 will significantly impact businesses and individuals in the UK. Accountants play a crucial role in helping clients na...
View articleAccountants must stay vigilant, adapt their tax strategies to evolving regulations, prioritize transparency, and foster collaboration with tax authori...
View articleAs the government prepares for re-election, PM Sunak promises to control spending in order to bring forth tax cuts next year Read More...
View articleThe Office for National Statistics revealed that the UK economy shrank by 0.3% in March after the economy grew by 0.1% in the previous three months Re...
View articleAs the Spring Budget approaches, dissenters of the UK government’s increasingly complex contractor legislation are baying for change. HMRC has already...
View article