Shipleys LLP

Chartered Accountants and Professional Business Advisers

Common Reporting Standards (CRS) for charities

What is happening?

Some charities will need to report financial accounts information under the Automatic Exchange of Information [SL1] requirements. These requirements exist to ensure global tax transparency by enabling participating jurisdictions to share information on tax payers.  Under these rules banks and Financial Institutions are required to collect and report data to HMRC annually.

Who is it happening to?

Some Charities and Not for Profit organisations come under the definition of Financial Institutions because they are categorised as Investment Entities.  An Investment Entity is a an entity that obtains more than 50% of its income from investing in financial assets over the preceding three years and those financial assets are managed by a Financial Institution on a discretionary basis.  This can apply to many charities and not for profit organisations, particularly those who are endowed charities or are grant making charities.

What will Charities who are Financial Institutions have to do?

They need to obtain the following information about reportable account holders on an annual basis:

  • Name
  • Address
  • Tax residence
  • Tax identification number
  • Date of birth for individuals

The above information is only reportable to HMRC if the recipient account holder is tax resident outside the UK and resident in a participating jurisdiction.

The first reporting period is to 31 December 2016 and the deadline for charities with reports to make is 31 May 2017.

Who are reportable account holders?

If the charity is a company or CIO the account holders would normally be lenders and shareholders and anyone with an interest in the capital or profits of the company. Members of a company limited by guarantee are not considered to have an equity interest.

If the charity is a trust the account holders would normally be the settlor, protector, beneficiaries and lenders.  If the charity gives grants, then those receiving grants would be account holders in the years that they received the grants.

What do charities need to do next?

Charities need to decide whether they need to take action and if they do, they should submit information via the Government Gateway.

They need to make sure that they keep up to date with their knowledge of which countries have signed up to CRS ( so that they can correctly report on account holders. They should also take steps to make sure that they are complying with data protection legislation in relation to keeping information on account holders.

Please get in touch with Sarah Leek  if you need help to make sure your Charity or Not for Profit organisation is compliant with CRS.

Specific advice should be obtained before taking action, or refraining from taking action, on any of the subjects covered.

Need more help? Please contact us at or +44 (0)20 7312 0000