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Charity test for private school School retains charitable status
(about 2 hours later)
Regulators are set to rule on whether a fee-paying school should continue to enjoy charitable status. Regulators have ruled that a fee-paying school should continue to enjoy charitable status.
The Office of the Scottish Charity Regulator (OSCR) will decide if the High School of Dundee meets a new "public benefit" assessment. The Office of the Scottish Charity Regulator (OSCR) decided that the High School of Dundee meets a new "public benefit" assessment.
The case is a test of legislation which was introduced by the Scottish Parliament in 2006. The case was the first of its kind since new legislation was introduced by the Scottish Parliament in 2006.
Under the new rules, charities must be able to demonstrate they have a charitable aim and benefit the public. Under the rules, charities must be able to demonstrate they have a charitable aim and benefit the public.
All 16 charities scrutinised by the new Office of the Scottish Charity Regulator satisfied the regulator that they provide public benefit.
As a result, the organisations will continue to receive tax relief.
Other independent schools across Scotland are likely to face similar scrutiny in the coming months.Other independent schools across Scotland are likely to face similar scrutiny in the coming months.
'Public benefit'Public benefit
Critics of the charitable status enjoyed by the High School of Dundee, which charges annual fees of about £8,000 for day pupils, have described them as "elitist educational businesses".Critics of the charitable status enjoyed by the High School of Dundee, which charges annual fees of about £8,000 for day pupils, have described them as "elitist educational businesses".
Defenders of the sector claim they save the country 35 times as much as they receive in tax relief, because their pupils do not take up places in state schools.Defenders of the sector claim they save the country 35 times as much as they receive in tax relief, because their pupils do not take up places in state schools.
They point to the number of less well-off children who are able to enrol in independent schools because of grants and scholarships.They point to the number of less well-off children who are able to enrol in independent schools because of grants and scholarships.
Despite interest in the ruling, the decision will not set a precedent for every fee-paying school with charitable status, as each will be judged by the regulators individually.Despite interest in the ruling, the decision will not set a precedent for every fee-paying school with charitable status, as each will be judged by the regulators individually.
The Office of Scottish Charities Regulator (OSCR) is the independent registrar and regulator for Scottish charities.
It has powers to grant charitable status and to investigate and take action in cases of mismanagement and misconduct.
The Charity Commission for England and Wales is currently consulting on how to implement a similar test of "public benefit" south of the border by early next year.The Charity Commission for England and Wales is currently consulting on how to implement a similar test of "public benefit" south of the border by early next year.