Charities: Investment and Pension Funds
The question
To ask the Chancellor of the Exchequer, what assessment has she made of the impact of section 57 of the Finance Act 2012 on (a) investment costs for charities and (b) the ability of charities to access the low‑cost, tax‑efficient vehicles available to pension schemes.
Answered by Dan Tomlinson
The Government recognises that generating investment returns can be important for supporting charitable purposes and that access to appropriate, cost effective investment vehicles is an important consideration for the sector. Charities are able to invest through a range of authorised UK fund structures designed to meet their needs, including Charity Authorised Investment Funds (CAIFs), which give a favourable tax treatment to eligible UK charities.
The Government has received representations in relation to the application of s57 of the Finance Act 2012 to charities. These are being considered through the normal policy processes.
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