News / Trust to be wound up
SHETLAND Development Trust is to be wound up and its assets transferred to Shetland Islands Council.
Development committee chairman Alastair Cooper said that due to changes to the tax regime the council had to move to protect “Shetland’s funds”.
Up until now, SDT avoided paying any tax on its profits by donating its surpluses to charities such as the NAFC Marine Centre and COPE, in turn enabling both those organisations to recover the tax that had been paid by the trust.
“The development trust was a creature of its time, but we are now in a situation where the local authority has far more economic powers,” Cooper said.
“We also have a new tax regime which means that the development trust had a very significant tax liability next year would we continue without change. So, we had to do something.”
The trust was established in 1996 to support economic development in Shetland by providing financial support to local businesses and industries which found it difficult to obtain bank loans due to limited security.
SDT has assets of over £20 million held in European fish quota (around £17 million) and in loans to local businesses (just over £3 million).
Cooper added that the local authority was acutely aware of potential implications for the value and security of its quota investments should Scotland find itself outside the European Union after the September referendum.
“The perceived wisdom is that the fisheries quota will exist in some form or another going forward,” he said, adding that there wasn’t a “clinical answer” to the question as yet.
Become a supporter of Shetland News
Shetland News is asking its many readers to consider start paying for their dose of the latest local news delivered straight to their PC, tablet or mobile phone.
Journalism comes at a price and because that price is not being paid in today’s rapidly changing media world, most publishers - national and local - struggle financially despite very healthy audience figures.
Most online publishers have started charging for access to their websites, others have chosen a different route. Shetland News currently has over 600 supporters who are all making small voluntary financial contributions. All funds go towards covering our cost and improving the service further.
Your contribution will ensure Shetland News can: -
- Bring you the headlines as they happen;
- Stay editorially independent;
- Give a voice to the community;
- Grow site traffic further;
- Research and publish more in-depth news, including more Shetland Lives features.
If you appreciate what we do and feel strongly about impartial local journalism, then please become a supporter of Shetland News by either making a single payment or monthly subscription.
Support us from as little as £3 per month – it only takes a minute to sign up. Thank you.
Already a supporter? Sign in to hide this message.
