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Scottish independence 'would be bad for some charities'

30 July 2013

Should the people of Scotland vote in favour of independence in next year's referendum it will throw up challenges for businesses that operate on both sides of the border.

If the nation does leave the UK, it will have a particularly severe impact on charities with pension schemes in both countries, an industry expert has claimed.

Speaking to news website Third Sector, pensions specialist at Spence & Partners David Davidson said independence would require the payment of large pension debts that could force many charities to close.

He claimed around 2,000 organisations currently have schemes on both sides of the border, many of which owe significant amounts of money.

However, EU rules state that pension programmes that operate in more than one nation cannot have a deficit, meaning charities would immediately be required to pay their debts should Scotland and the UK split.

"A lot of charities wouldn’t be able to find the money … This has the potential to be pretty catastrophic," Mr Davidson told the news provider.

The issue of Scottish independence will be settled by a public referendum on September 18th 2014.

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Categories: Charities, Commercial

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