Charity Commission may not be 'fit for purpose', MPs say

MPs have questioned whether the UK's charity regulator is fit for purpose, after it failed to spot a charity apparently set up for tax avoidance.

A report by the Public Accounts Committee (PAC) said the Charity Commission did not carry out sufficient checks on the Cup Trust charity.

The Cup Trust was given charitable status by the commission in 2009. The PAC said it then received £176m in income, but gave away just £55,000 to charitable causes.

In the meantime, The Cup Trust tried to claim gift aid of £46m.

PAC chairwoman Margaret Hodge said the committee was "extremely concerned" and intended to take "a detailed look at the work of the Charity Commission".

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