Lost in transition

Finance | Gareth Jones | 1 Apr 2006

A dispute has arisen in Scotland over the planned transfer of power as registrars of charitable status from HMRC to OSCR, due to take place this month.

OSCR has released a statement reassuring the sector that there will be a smooth transition. However, reports in Third Force News claim that hundreds of charities will be left in limbo as there is a two month gap in the handover between February 20 and April 24, when OSCR formally launches. This period will see hundreds of applications for charitable status ignored, according to Susan Smith of SCVO.

The major fallout from this backlog would be that hundreds of new charities would not be able to apply for grants or funding. Nor would they be able to take advantage of the financial benefits of tax relief as soon as they otherwise could have. Lucy McTernan, SCVO's head of corporate affairs, said: "It is simply unacceptable that charities are being left high and dry like this. OSCR is currently only guaranteeing a response within three months. There are on average four new charities established in Scotland everyday, so this hiatus will affect hundreds of small organisations."

Marieke Dwarshuis, OSCR's head of charities, said that the article was misleading as applications were looked at by HMRC up to 31 March and that applications which required a longer consideration have already been forwarded to OSCR. He added: "It may be the case that decisions are made and announced very shortly. However, the public, and surely the sector, demands that OSCR's decisions are based on a full and proper consideration of any application."

Directory: HM Revenue & Customs (HMRC) | Office of the Scottish Charity Regulator (OSCR) | SCVO

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