An update is now available on the discussions that HMRC Charities has been having with charities about bond-washing. In summary, it is Revenue's view that the risk of liability in this area is less than had been thought. HMRC have advised that they will not be seeking penalties. However, there may be some liability to interest where tax is paid later than it ordinarily would have been. HMRC is not proposing to extend this initial exercise any further.

Click http://www.hmrc.gov.uk/charities/bond-washing-news.htm for the HMRC update.