Secondary legislation has been laid in the Scottish Parliament which, if approved by MSPs, will take effect from 1 January 2026.

This change means an estimated 93% of Scotland’s 24,500 registered charities will no longer need to undergo a costly and time-consuming audit. The move directly responds to feedback from charities highlighting the pressures of rising costs and a scarcity of specialist charity auditors.

Social Justice Secretary Shirley-Anne Somerville confirmed the government had listened to the sector’s challenges, including rising employers’ National Insurance contributions. “It’s important that charity regulation… is fair and works well,” she said, stressing that charities “will still be held to high standards”.

The change was strongly welcomed by the Scottish Council for Voluntary Organisations (SCVO). Chief Executive Anna Fowlie said: “The threshold for requiring a full audit has been static for decades, placing a burden on small charities who simply can’t afford the cost or the time. There is also a shortage of auditors prepared to take on such small pieces of work.”