Contents

• About FICO
• What are FICO’s current requirements?
• What are FICO’s requirements from April 2000?
• Will all charities receive returns annually?
• Will charities have to self assess?
• What is the purpose of the separate charity pages?
• Is there help available in completing the returns?
• How can I find out more?

About FICO

The Financial Intermediaries and Claims Office (FICO) is the Inland Revenue office responsible for the tax affairs of all UK charities in relation to:

Corporation Tax

Income Tax

Capital Gains Tax

What are FICO’s current requirements?

In March 1998 FICO (Audit & Compliance) issued a mailshot to charities requesting that accounts should not be submitted annually. Charities were notified that FICO would only ask a charity to send accounts when it needed to see them.

Some charities are still sending FICO their accounts even though they have not been asked to do so. Please do not send FICO the charity accounts unless they have been requested.

What are FICO’s requirements from April 2000?

From 6 April 2000 these requests for returns will cease and Self Assessment returns will be issued to selected charities.

Will all charities receive returns annually?

No. Under the Self Assessment regime formal return requests will be issued to a sample of charities each year. The type of return required will be specified in the notice issued to those charities concerned. This will depend on whether the Charity is a trust or company for tax purposes.

Please note:

Even if a charity does not receive a request to complete a Self Assessment return, the onus remains with the charity to notify chargability to tax where all or part of its income and gains are not exempt from tax.

Will charities have to self assess?

Yes. Those charities which receive returns will be required to self assess. The charity’s accounts will have to be submitted in support of the return made.

Both the Trust and Company Self Assessment returns have special charity pages, which must be completed. The separate charity pages to forms CT600 (Company Self Assessment Return) and SA900 (Trust Self Assessment Return) will be available from the form telephone request lines accompanying the returns.

What is the purpose of the separate charity pages?

The charity pages will be used to return income and gains of the charity on which it claims exemption from tax. These pages must be completed for the charity to obtain the exemptions available to it for the period covered by the return.

The charity pages also request information to show that the expenditure of the charity has been charitable and that any investments or loans made are qualifying under the Taxes Acts.

Is there help available in completing the returns?

Yes. There are notes to help completion of the returns including the charity pages. But, if there are specific problems in completing the charity pages help should be sought from FICO (Charities).

A charity receiving a request for a return should consider contacting its professional advisers for assistance in completing it, particularly if amounts need to be extracted from the accounts or a liability to tax assessed.

How can I find out more?