SCVO welcomes Barclay Review recommendations

In the Barclay Review of Business Rates published today (22 August 2017) two key recommendations affecting the third sector in Scotland were put forward. First, the Group have recommended that arms-length external organisations (ALEOs) lose charitable rate tax relief (and sports club relief, if applicable) as this has been highlighted as a form of tax avoidance. The Group also recommended that private independent schools lose their charitable rate relief as this creates an unfair advantage when compared with state schools. Another positive development to come out of the report is new rate relief for day nurseries to support childcare provision, which includes third sector providers. Martin Sime, Chief Executive of the Scottish Council for Voluntary Organisations (SCVO) said: “The Barclay Review of Business Rates has recognised the importance of the third sector in Scotland by maintaining relief for charities which provide public benefit. SCVO has long believed that arms-length organisations of local authorities and private schools are not genuine third sector organisations so we also welcome the Group’s recommendations around removing charitable rate relief from ALEOs and independent schools, which it has recognised as a form of tax avoidance.” The full report can be found at http://www.gov.scot/Resource/0052/00523643.pdf