The current Scottish government would ensure that charities continue to benefit from tax relief on donations if the country votes for independence in next year’s referendum, it has promised in its White Paper on the subject, published yesterday.

And a ‘yes’ vote would give future governments and parliaments more freedom to consider new policies to boost giving, it suggests.

The document devotes five of its 600-plus pages to ‘charities and the third sector’ and assures readers that the current Scottish government is “committed to supporting the development of a capable, sustainable and enterprising third sector”.

It explains that regulation of charities operating and/or registered in Scotland is already devolved and that arrangements are in place between the Office of the Scottish Charity Regulator (OSCR) and the Charity Commission to regulate and monitor those charities registered in England and Wales but operating in Scotland.

And it uses the analogy of the UK and Ireland to suggest how various decisions would be taken in the event of a ‘yes’ vote: “Many charities currently operate cross-border in the UK and Ireland. Although responsibility for the legal framework surrounding charities is already devolved, income tax and corporation tax exemptions and reliefs for charities are reserved, along with legislation covering tax relief on gift aid, investment income, trading profits and Capital Gains Tax.

“The Scottish Parliament in an independent Scotland will control both charity law and tax matters. This will enable future Scottish governments and parliaments to consider taxation policy that would enhance opportunities for charitable giving.”

In the Q&A section, it poses the question of how an independent Scotland would ensure that a fair share of the income of cross-border charities is deployed in Scotland.  And it answers it by stating that decisions on funding are for charities themselves: “There are no legal provisions in place currently that require funds to be distributed in a particular way between the nations of the UK.”

It also asks whether UK-based trusts and foundations will continue to fund the work of charities operating in an independent Scotland, and responds: “There is no reason why they will not. Trustees themselves are, and will remain, responsible for deciding which charities they fund and support.”

After the White Paper was published, OSCR chief executive David Robb issued a statement reminding charities that the regulator has already published guidance on the independence referendum, and recommending that they read it and consider the impact of the outcome on their work.