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Charities – fit & proper persons test

Charities – fit & proper persons test HMRC NOTICES
 

There is a fit and proper persons test which is used to ensure people who are responsible for the general control, management and administration of charities are properly qualified. The test applies to trustees of charities, directors of corporate charities, directors of corporate trustees, CASC officials, and any other persons having general control and management over the running of the charity or the application of its assets.

Whilst there is no definition in the legislation of a ‘fit and proper person’ HMRC’s guidance provides further information to help answer the following questions:

  • Why have the fit and proper persons test?
  • Who does the fit and proper persons test apply to?
  • What is the fit and proper persons test about?
  • What happens if a manager is not a fit and proper person?
  • When does HMRC consider it reasonable to treat the management condition as being met?
  • How does HMRC apply the fit and proper persons test?
  • What will happen to a manager if HMRC doesn’t think they are fit and proper
  • What will happen to the charity if the person is not fit and proper?
  • What will HMRC tell charity regulators?
  • What should charities do to comply with the fit and proper persons test?
  • Suggested procedure for charities when they appoint new managers?
  • Which managers do charities need to tell HMRC about?
  • HMRC’s guidance on the fit and proper persons test has recently been updated.

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