SLfT7013 - Approved body not spending contribution on a project fulfilling approved fund object

SLfT guidance on the rules which apply when an approved body fails to spend a contribution on an approved object or fails to transfer it to a project.

We can recover all or part of a SLfT credit where we are not satisfied that the relevant contribution was spent by the approved body on an object of the scheme or the approved body did not transfer the money to a project within two years of receiving it.

SEPA will inform us of all irregularities and we will consider each case on its merits when deciding whether the repayment of credit (or 'claw back') is appropriate. (Note: If the approved body has already given your contribution to a project, the ability for us to seek a claw back of the contribution from you ceases).

Important: Although the scheme provides for a tax credit of 90% of your contribution, the whole amount of the contribution itself must be given by you.

The fact that SEPA has registered and is regulating an approved body should give you reassurance that the body will be spending funds on approved objects. However, you may wish to check their registration status before making each payment to an approved body.

You may wish to spread your contributions among a number of approved bodies to reduce the risk.

Ref ID: 
SLfT7013
Archive Date: 
10 March 2015
Last updated: 
10 March 2015
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