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Part 1 Introduction

Qualifying gifts

1 (1) For the purposes of this Schedule, a person makes a “qualifying gift” if the person makes a gift in the circumstances described in sub-paragraph (2).

(2) The circumstances are—

(a) the person offers to give pre-eminent property to be held for the benefit of the public or the nation,

(b) the person is legally and beneficially entitled to the property and the property is not owned jointly (or in common) with others,

(c) the offer is made in accordance with a scheme set up by the Secretary of State for the purposes of this Schedule,

(d) the offer is registered in accordance with the scheme,

(e) the offer, or a part of the offer, is accepted in accordance with the scheme, and

(f) the gift is made pursuant to the offer, or the part of the offer, accepted.

(3) In this Schedule—

(a) “the agreed terms” means the terms on which acceptance is agreed, as recorded in the manner prescribed by the scheme, and

(b) “the offer registration date” means the date when the offer was registered in accordance with the scheme.

Part 2 Income tax and capital gains tax

Taxes affected

2 (1) This Part applies to an individual’s liability to income tax and capital gains tax.

(2) It does not apply to any liability arising as a trustee or personal representative.

(3) Subject to sub-paragraph (2)—

(a) a reference in this Part to an individual’s “tax liability” is to the individual’s liability to income tax and capital gains tax, and

(b) references to an amount of or on account of “tax” are to be read accordingly.

The basic rule

3 (1) If an individual (“N”) makes a qualifying gift, a portion of N’s tax liability for each relevant tax year is to be treated as satisfied, as if N had paid that portion when it became due (or on the offer registration date, if the portion became due before that date).

(2) A “relevant tax year” is a tax year identified in the agreed terms as a tax year to which this paragraph is to apply.

(3) Up to 5 tax years may be identified in the agreed terms, but each one must be either—

(a) the tax year in which the offer registration date falls, or

(b) one of the 4 tax years following that tax year.

The portion treated as satisfied

4 (1) The portion of N’s tax liability for a relevant tax year that is to be treated as satisfied is an amount equal to the smaller of—

(a) the tax reduction figure allocated to that tax year, and

(b) the amount of N’s tax liability for that tax year less any portion of that amount that is treated as satisfied in consequence of any qualifying gift made by N on a previous occasion.

(2) The amount determined under sub-paragraph (1) may be nil.

(3) The tax reduction figure allocated to a tax year is such part of the total tax reduction figure as is expressed in the agreed terms to be allocated to that tax year.

(4) The figures allocated to the relevant tax years must in total add up to no more than the total tax reduction figure.

(5) “The total tax reduction figure” is 30% of the value set out in the agreed terms as the agreed value of the property forming the subject of the qualifying gift.

(6) The Treasury may by order substitute a different percentage for the percentage specified for the time being in sub-paragraph (5).

Order in which benefit is applied

5 (1) If the tax reduction figure allocated to a relevant tax year is less than the amount determined under paragraph 4(1)(b) for that tax year, the benefit of paragraph 3(1) is to be applied to N’s tax liability in the order specified in the agreed terms.

(2) If no order is specified, the order is—

(a) first, to N’s liability to income tax for that year, and

(b) then, to N’s liability to capital gains tax for that year.

Effect of basic rule on interest and penalties

6 (1) This paragraph explains the effect of paragraph 3(1) as regards late payment interest and late payment penalties.

(2) The effect is that liability to pay amounts specified in sub-paragraph (3) ceases when the qualifying gift is made, as if the liability had never arisen.

(3) The amounts are—

(a) any late payment interest that accrued on the relevant portion during the negotiation period, and

(b) any late payment penalty to which N became liable in the negotiation period for failing to pay the relevant portion (together with any interest on such a penalty).

(4) “The relevant portion” is the portion of N’s tax liability for a relevant tax year that is treated under paragraph 3 as satisfied.

(5) In determining for the purposes of sub-paragraph (2) whether or to what extent—

(a) late payment interest accruing on an amount of or on account of N’s tax liability for the relevant tax year is attributable to the relevant portion, or

(b) a late payment penalty incurred for failing to pay an amount of or on account of N’s tax liability for the relevant tax year is attributable to the relevant portion,

any attribution or apportionment is to be done in the way that maximises the relief obtained by N by virtue of this paragraph.

(6) “The negotiation period” is the period—

(a) beginning with the offer registration date, and

(b) ending with the day on which the qualifying gift is made.

(7) Nothing in this paragraph affects any late payment interest that accrued, or any late payment penalty to which N became liable, before the offer registration date.

Changes to N’s tax liability

7 (1) If the amount of N’s tax liability for a relevant tax year is revised at any time, the portion of that liability that is treated under paragraph 3(1) as satisfied is to be re-calculated.

(2) But nothing in this paragraph permits any revision of the agreed terms.

Gifts set aside etc

8 If a qualifying gift is set aside or declared void after it is made—

(a) the portion of N’s tax liability for each relevant tax year that is treated as satisfied ceases to be treated as satisfied,

(b) the effect described in paragraph 6 is negated, and

(c) N is required to pay the portion due for each relevant tax year, together with any late payment interest and late payment penalties in respect of it, by the later of—

(i) the end of the period of 30 days beginning with the day on which the gift was set aside or declared void, and

(ii) the day by which N would have been required to pay those amounts but for this Schedule.

Suspension pending negotiations

9 (1) An individual who makes an offer in the circumstances described in paragraph 1 (a “potential donor”) may make a request under this paragraph if—

(a) the offer is registered in accordance with the scheme,

(b) the offer includes a proposal (“the donor proposal”) of what should be in the agreed terms,

(c) the potential donor will be required to pay an amount of or on account of tax for a relevant tax year by a certain date, and

(d) the negotiations are not expected to conclude before that date (referred to as “the due date”).

(2) For the purposes of this paragraph, the negotiations “conclude” when—

(a) a qualifying gift is made pursuant to the offer,

(b) the offer is withdrawn by the potential donor, or

(c) the offer is rejected.

(3) A request under this paragraph is a request that the potential donor’s obligation to pay the amount by the due date be suspended until the negotiations conclude.

(4) But the running total of amounts for which suspension may be requested under this paragraph in respect of the same offer and the same relevant tax year must not exceed the proposed tax reduction figure for that tax year.

(5) “The proposed tax reduction figure” for a tax year is the amount shown in the donor proposal as the proposed tax reduction figure for that year.

(6) A request under this paragraph—

(a) must be made in writing to HMRC at least 45 days before the due date, and

(b) must be accompanied by a copy of the donor proposal and such other information as an officer of Revenue and Customs may reasonably require.

(7) In considering whether or to what extent to agree to a request, HMRC must have regard to all the circumstances of the case (including, for example, the creditworthiness of the potential donor).

(8) HMRC may impose conditions with respect to the suspension.

10 (1) Suspension under paragraph 9 of a potential donor’s obligation to pay an amount of or on account of tax stops the donor from becoming liable to late payment penalties for or in connection with the failure to pay that amount by the due date.

(2) But it does not stop late payment interest from accruing on that amount from the due date.

(3) HMRC may by notice in writing to the potential donor withdraw its agreement to the suspension with effect from such date, before conclusion of the negotiations, as may be specified in the notice.

(4) If it does so, the potential donor must pay the amount, together with any late payment interest that has accrued on it since the due date, by the end of the period of 30 days beginning with the date specified in the notice.

(5) The last day of that 30-day period is to be treated for the purposes of any enactment relating to late payment penalties as the date on or before which the amount must be paid.

(6) Paragraph 11 explains what happens once the negotiations conclude (depending on the outcome of the negotiations).

Conclusion of negotiations

11 (1) This paragraph applies if a potential donor’s obligation to pay an amount of or on account of tax remains suspended under paragraph 9 when the negotiations conclude (within the meaning of that paragraph).

(2) The potential donor must pay the amount, together with any late payment interest that has accrued on it since the due date, within the period of 30 days beginning with the day on which the negotiations concluded.

(3) The last day of that 30-day period is to be treated for the purposes of any enactment relating to late payment penalties as the date on or before which the amount must be paid.

(4) But if the negotiations conclude because a qualifying gift is made pursuant to the offer or a part of the offer—

(a) sub-paragraph (2) is to be read subject to paragraph 3(1) (and its effect as described in paragraph 6), and

(b) accordingly, the potential donor is only required to pay so much as is not treated as satisfied under paragraph 3(1).

(5) If the negotiations conclude in relation to a part only of the offer—

(a) this paragraph is to be given effect as far as reasonably practicable in relation to that part, and

(b) on receipt of a revised copy of the donor proposal, HMRC may give effect to paragraph 9 in relation to the part of the offer that remains under negotiation.

Part 3 Corporation tax

Taxes affected

12 (1) This Part applies to a company’s liability to corporation tax.

(2) A reference in this Part to a company’s “tax liability” is to the company’s liability to corporation tax.

(3) References to an amount of or on account of “tax” are to be read accordingly.

The basic rule

13 (1) If a company (“C”) makes a qualifying gift, a portion of C’s tax liability for the relevant accounting period is to be treated as satisfied, as if C had paid that portion when it became due (or on the offer registration date, if the portion became due before that date).

(2) “The relevant accounting period” is the accounting period of C’s in which the offer registration date falls.

The portion treated as satisfied

14 (1) The portion of C’s tax liability for the relevant accounting period that is to be treated as satisfied is an amount equal to the smaller of—

(a) the tax reduction figure, and

(b) the amount of C’s tax liability for that period less any portion of that amount that is treated as satisfied in consequence of any qualifying gift made by C on a previous occasion.

(2) The amount determined under sub-paragraph (1) may be nil.

(3) The tax reduction figure is—

(a) 20% of the value set out in the agreed terms as the agreed value of the property forming the subject of the qualifying gift, or

(b) such lower figure as may be specified in the agreed terms as the tax reduction figure.

(4) The Treasury may by order substitute a different percentage for the percentage specified for the time being in sub-paragraph (3)(a).

Effect of basic rule on interest and penalties

15 (1) This paragraph explains the effect of paragraph 13 as regards late payment interest and late payment penalties.

(2) The effect is that liability to pay amounts specified in sub-paragraph (3) ceases when the qualifying gift is made, as if the liability had never arisen.

(3) The amounts are—

(a) any late payment interest that accrued on the relevant portion during the negotiation period, and

(b) any late payment penalty to which C became liable in the negotiation period for failing to pay the relevant portion (together with any interest on such a penalty).

(4) “The relevant portion” is the portion of C’s tax liability for the relevant accounting period that is treated under paragraph 13 as satisfied.

(5) In determining for the purposes of sub-paragraph (2) whether or to what extent—

(a) late payment interest accruing on an amount of or on account of C’s tax liability for the relevant accounting period is attributable to the relevant portion, or

(b) a late payment penalty incurred for failing to pay an amount of or on account of C’s tax liability for the relevant accounting period is attributable to the relevant portion,

any attribution or apportionment is to be done in the way that maximises the relief obtained by C by virtue of this paragraph.

(6) “The negotiation period” is the period—

(a) beginning with the offer registration date, and

(b) ending with the day on which the qualifying gift is made.

(7) Nothing in this paragraph affects any late payment interest that accrued, or any late payment penalty to which C became liable, before the offer registration date.

Changes to C’s tax liability

16 (1) If the amount of C’s tax liability for the relevant accounting period is revised at any time, the portion of that liability that is treated under paragraph 13 as satisfied is to be re-calculated.

(2) But nothing in this paragraph permits any revision of the agreed terms.

Gifts set aside etc

17 If a qualifying gift is set aside or declared void after it is made—

(a) the portion of C’s tax liability for the relevant accounting period treated as satisfied ceases to be treated as satisfied,

(b) the effect described in paragraph 15 is negated, and

(c) C is required to pay the portion due, together with any late payment interest and late payment penalties in respect of it, by the later of—

(i) the end of the period of 30 days beginning with the day on which the gift was set aside or declared void, and

(ii) the day by which C would have been required to pay those amounts but for this Schedule.

Suspension pending negotiations

18 (1) A company that makes an offer in the circumstances described in paragraph 1 (a “potential donor”) may make a request under this paragraph if—

(a) the offer is registered in accordance with the scheme,

(b) the offer includes a proposal (“the donor proposal”) of what should be in the agreed terms,

(c) the potential donor will be required to pay an amount of or on account of tax for the relevant accounting period by a certain date, and

(d) the negotiations are not expected to conclude before that date (referred to as “the due date”).

(2) For the purposes of this paragraph, the negotiations “conclude” when—

(a) a qualifying gift is made pursuant to the offer,

(b) the offer is withdrawn by the potential donor, or

(c) the offer is rejected.

(3) A request under this paragraph is a request that the potential donor’s obligation to pay the amount by the due date be suspended until the negotiations conclude.

(4) But the running total of amounts for which suspension may be requested under this paragraph in respect of the same offer must not exceed the proposed tax reduction figure.

(5) “The proposed tax reduction figure” is the amount shown in the donor proposal as the proposed tax reduction figure.

(6) A request under this paragraph—

(a) must be made in writing to HMRC at least 45 days before the due date, and

(b) must be accompanied by a copy of the donor proposal and such other information as an officer of Revenue and Customs may reasonably require.

(7) In considering whether or to what extent to agree to a request, HMRC must have regard to all the circumstances of the case (including, for example, the creditworthiness of the potential donor).

(8) HMRC may impose conditions with respect to the suspension.

19 (1) Suspension under paragraph 18 of a potential donor’s obligation to pay an amount of or on account of tax stops the donor from becoming liable to late payment penalties for or in connection with the failure to pay that amount by the due date.

(2) But it does not stop late payment interest from accruing on that amount from the due date.

(3) HMRC may by notice in writing to the potential donor withdraw its agreement to the suspension with effect from such date, before conclusion of the negotiations, as may be specified in the notice.

(4) If it does so, the potential donor must pay the amount, together with any late payment interest that has accrued on it since the due date, by the end of the period of 30 days beginning with the date specified in the notice.

(5) The last day of that 30-day period is to be treated for the purposes of any enactment relating to late payment penalties as the date on or before which the amount must be paid.

(6) Paragraph 20 explains what happens once the negotiations conclude (depending on the outcome of the negotiations).

Conclusion of negotiations

20 (1) This paragraph applies if a potential donor’s obligation to pay an amount of or on account of tax remains suspended under paragraph 18 when the negotiations conclude (within the meaning of that paragraph).

(2) The potential donor must pay the amount, together with any late payment interest that has accrued on it since the due date, within the period of 30 days beginning with the day on which the negotiations concluded.

(3) The last day of that 30-day period is to be treated for the purposes of any enactment relating to late payment penalties as the date on or before which the amount must be paid.

(4) But if the negotiations conclude because a qualifying gift is made pursuant to the offer or a part of the offer—

(a) sub-paragraph (2) is to be read subject to paragraph 13 (and its effect as described in paragraph 15), and

(b) accordingly, the potential donor is only required to pay so much as is not treated as satisfied under paragraph 13.

(5) If the negotiations conclude in relation to a part only of the offer—

(a) this paragraph is to be given effect as far as reasonably practicable in relation to that part, and

(b) on receipt of a revised copy of the donor proposal, HMRC may give effect to paragraph 18 in relation to the part of the offer that remains under negotiation.

Part 4 General provision

Orders

21 (1) An order under Part 2 or 3 of this Schedule is to be made by statutory instrument.

(2) It may include transitional and saving provisions.

(3) A statutory instrument containing an order under Part 2 or 3 of this Schedule is subject to annulment in pursuance of a resolution of the House of Commons.

Pre-eminent property

22 (1) In this Schedule, “pre-eminent property” means—

(a) any picture, print, book, manuscript, work of art, scientific object or other thing that the relevant Minister is satisfied is pre-eminent for its national, scientific, historic or artistic interest,

(b) any collection or group of pictures, prints, books, manuscripts, works of art, scientific objects or other things if the relevant Minister is satisfied that the collection or group, taken as a whole, is pre-eminent for its national, scientific, historic or artistic interest, or

(c) any object that is or has been kept in a significant building if it appears to the relevant Minister desirable for the object to remain associated with the building.

(2) A “significant building” is any building falling within section 230(3)(a) to (d) of IHTA 1984 (acceptance of property in lieu of tax).

(3) “National interest” includes interest within any part of the United Kingdom.

(4) In determining whether an object or collection or group of objects is pre-eminent, regard is to be had to any significant association of the object, collection or group with a particular place.

The relevant Minister

23 (1) For the purposes of paragraph 22, “the relevant Minister” is—

(a) for items with a purely Scottish interest, the Scottish Ministers,

(b) for items with some Scottish interest but with no Northern Irish interest and no Welsh interest, the Secretary of State and the Scottish Ministers concurrently,

(c) for items with a purely Northern Irish interest, the Northern Ireland Department of Culture, Arts and Leisure,

(d) for items with some Northern Irish interest but with no Scottish interest and no Welsh interest, the Secretary of State and the Northern Ireland Department of Culture, Arts and Leisure concurrently,

(e) for items with a purely Welsh interest, the Welsh Ministers,

(f) for items with some Welsh interest but with no Scottish interest and no Northern Irish interest, the Secretary of State and the Welsh Ministers concurrently, and

(g) for any other items, the Secretary of State.

(2) If an item within sub-paragraph (1)(g) has more than one devolved interest, the Secretary of State must consult the appropriate Minister for each such interest before making a decision under paragraph 22 affecting the item.

(3) An item has a purely Scottish interest if—

(a) it is located in Scotland, and

(b) the offer contains—

(i) no wish about where the item is to be displayed, or

(ii) a wish that it is to be displayed in Scotland.

(4) An item has some Scottish interest if it does not have a purely Scottish interest but—

(a) it is located in Scotland, or

(b) the offer contains a wish that it is to be displayed in Scotland.

(5) An item has no Scottish interest if it does not have a purely Scottish interest and it does not have some Scottish interest.

(6) References to items with a purely Northern Irish or purely Welsh interest, to items with some Northern Irish or some Welsh interest and to items with no Northern Irish interest or no Welsh interest are to be read in accordance with sub-paragraphs (3) to (5), but replacing references to Scotland with references to Northern Ireland or, as the case may be, Wales.

(7) A “devolved interest” is some Scottish interest, some Northern Irish interest or some Welsh interest.

(8) “The appropriate Minister” is—

(a) if the item has some Scottish interest, the Scottish Ministers,

(b) if the item has some Northern Irish interest, the Northern Ireland Department of Culture, Arts and Leisure, and

(c) if the item has some Welsh interest, the Welsh Ministers.

(9) “Item” means an object or collection or group of objects.

General interpretation

24 In this Schedule—

25 Nothing in this Schedule is to give rise to any right or expectation that an offer made as mentioned in paragraph 1 will be accepted.

Part 5 Related changes

IHTA 1984

26 IHTA 1984 is amended as follows.

27 In section 25 (gifts for national purposes etc), after subsection (2) insert—

(3) A transfer of value is an exempt transfer to the extent that the value transferred by it is attributable to property that is being transferred in the circumstances described in paragraph 1 of Schedule 14 to the Finance Act 2012 (gifts to the nation).

28 In section 26A (potentially exempt transfer of property subsequently held for national purposes etc), in paragraph (b), after “below” insert “or in the circumstances described in paragraph 1 of Schedule 14 to the Finance Act 2012 (gifts to the nation)”.

29 (1) Section 32 (conditionally exempt transfers: chargeable events) is amended as follows.

(2) In subsection (3), for “subsections (4) and (5)” substitute “subsections (4), (4A) and (5)”.

(3) After subsection (4) insert—

(4A) A death or disposal is not a chargeable event with respect to any property if—

(a) in the case of a death, a person who became beneficially entitled to the property on the death disposes of it in the circumstances described in paragraph 1 of Schedule 14 to the

Finance Act 2012 (gifts to the nation) within 3 years of the death, or

(b) in the case of a disposal, the disposal is made in the circumstances described in paragraph 1 of that Schedule,

and a death or disposal of the property after such a disposal as is mentioned in paragraph (a) or (b) is not a chargeable event with respect to the property unless there has again been a conditionally exempt transfer of it after that disposal.

30 (1) Section 32A (associated properties) is amended as follows.

(2) After subsection (5) insert—

(5A) The death of a person beneficially entitled to property, or the disposal of property, is not a chargeable event if—

(a) in the case of a death, a person who became beneficially entitled to the property on the death disposes of it in the circumstances described in paragraph 1 of Schedule 14 to the Finance Act 2012 (gifts to the nation) within 3 years of the death, or

(b) in the case of a disposal, the disposal is made in the circumstances described in paragraph 1 of that Schedule.

(3) In subsection (7), after “(5)(a) or (b)” insert “or (5A)(a) or (b)”.

31 In section 33 (amount of charge under section 32), in subsection (6)—

(a) for “section 32(4)” substitute “section 32(4) or (4A)”, and

(b) for “section 32A(5)”, in both places it appears, substitute “section 32A(5) or (5A)”.

32 In section 34 (reinstatement of transferor’s cumulative total), in subsection (4)—

(a) for “section 32(4)” substitute “section 32(4) or (4A)”, and

(b) for “section 32A(5)”, in both places it appears, substitute “section 32A(5) or (5A)”.

Estate duty etc

33 (1) This paragraph applies if a person makes a qualifying gift and as a result—

(a) estate duty becomes chargeable under section 40 of FA 1930 (exemption from death duties of objects of national etc interest), or

(b) tax becomes chargeable under Schedule 5 to IHTA 1984 (conditional exemption: deaths before 7 April 1976).

(2) Despite any other enactment, the amount of duty or tax that becomes so chargeable as a result of the gift is to be limited to the amount (if any) by which A exceeds B.

(3) For these purposes—

(4) References in this paragraph to the amount of duty or tax that becomes so chargeable are to the amount before applying any credit allowable against it under section 33(7) of IHTA 1984.

(5) Nothing in this paragraph entitles a person to any repayment of inheritance tax if the amount of any such credit exceeds the amount (if any) chargeable in accordance with sub-paragraph (2).

(6) In the application of this paragraph to Northern Ireland, for the reference to section 40 of FA 1930 substitute a reference to section 2 of the Finance Act (Northern Ireland) 1931.

TCGA 1992

34 In section 258 of TCGA 1992 (works of art etc), before subsection (2) insert—

(1A) A gain is not a chargeable gain if it accrues on a disposal made in the circumstances described in paragraph 1 of Schedule 14 to the Finance Act 2012 (gifts to the nation).

ITA 2007

35 In Chapter A1 of Part 14 of ITA 2007 (income tax: remittance basis), after section 809YD (inserted by Schedule 12 to this Act) insert—

809YE Exception to section 809Y: gifts to the nation

(1) Section 809Y(1) does not apply to property if—

(a) it ceases to be exempt property in the second case mentioned in that section, and

(b) by no later than the time when it ceases to be exempt property, it has been donated in the circumstances described in paragraph 1 of Schedule 14 to FA 2012 (gifts to the nation).

(2) Where section 809Y(1) does not apply to property by virtue of this section, the property is to continue to be treated as not remitted to the United Kingdom even though it no longer meets any of the relevant rules.

Part 6 Commencement

36 (1) Parts 2 and 3 of this Schedule have effect in relation to liabilities for tax years and accounting periods beginning on or after such day as the Treasury may by order appoint.

(2) The power of the Treasury under sub-paragraph (1) includes power to appoint a day that is earlier than the day on which the order is made, but no earlier than 1 April 2012.

(3) An order under this paragraph is to be made by statutory instrument.

Section 51

SCHEDULE 15 Relief in respect of gift aid and other income

Claims by charitable trusts etc

1 (1) In Part 10 of ITA 2007 (special rules about charitable trusts etc), section 538A (claims in relation to gift aid relief) is amended as follows.

(2) Before subsection (1) insert—

(A1) This section applies to claims for—

(a) repayment of income tax treated as having been paid by virtue of section 520(4) (gift aid relief: income tax treated as paid by trustees of charitable trust), or

(b) repayment of income tax deducted at source from income to which any of the following applies—

(i) section 532 (exemption for savings and investment income),

(ii) section 533 (exemption for public revenue dividends),

(iii) section 536 (exemption for certain miscellaneous income), or

(iv) section 537 (exemption for income from estates in administration).

(3) In subsection (1)—

(a) before “applies” insert “also”, and

(b) for the words after “tax” substitute by virtue of—

(a) section 521(4) (gifts entitling donor to gift aid relief: charitable trusts), or

(b) any of the provisions mentioned in subsection (A1)(b).

(4) Accordingly, in the heading, after “relief” insert “etc”.

Claims by charitable companies etc

2 Part 11 of CTA 2010 (charitable companies etc) is amended as follows.

3 (1) In Chapter 2 (gifts and other payments), section 477A (claims in relation to gift aid relief) is amended as follows.

(2) Before subsection (1) insert—

(A1) This section applies to claims for repayment of income tax treated as having been paid by virtue of—

(a) section 471 (gifts qualifying for gift aid relief: charitable companies), or

(b) section 475 (gifts qualifying for gift aid relief: eligible bodies).

(3) In subsection (1), before “applies” insert “also”.

4 In Chapter 3 (other exemptions), after section 491 insert—

Claims

491A Claims in relation to certain reliefs

(1) Subsections (2) to (5) of section 477A (claims in relation to gift aid relief) apply to—

(a) claims for amounts to be exempt from tax by virtue of a provision listed in subsection (2), and

(b) claims for repayment of income tax deducted at source from income which is exempt from tax by virtue of such a provision,

as they apply to claims to which that section applies.

(2) The provisions are—

(a) section 486 (investment income and non-trading profits from loan relationships),

(b) section 487 (public revenue dividends),

(c) section 488 (certain miscellaneous income), and

(d) section 489 (income from estates in administration).

Community amateur sports clubs: gift aid and other income

5 Chapter 9 of Part 13 of CTA 2010 (special types of company etc: community amateur sports clubs) is amended as follows.

6 After section 661C insert—

Gifts qualifying for gift aid relief

661D Tax treatment of gifts qualifying for gift aid relief

(1) This section applies if a gift is made to a registered club by an individual and the gift is a qualifying donation for the purposes of Chapter 2 of Part 8 of ITA 2007 (gift aid).

(2) The club is treated as receiving, under deduction of income tax at the basic rate for the tax year in which the gift is made, a gift of an amount equal to the grossed up amount of the gift.

(3) The income tax treated as deducted is treated as income tax paid by the club.

(4) The grossed up amount of the gift is treated as an amount in respect of which the club is chargeable to corporation tax, under the charge to corporation tax on income.

But this is subject to section 664 (exemption for interest and gift aid income).

But this is subject to section 664 (exemption for interest and gift aid income).

(5) References in this section to the grossed up amount of the gift are to the amount of the gift grossed up by reference to the basic rate for the tax year in which the gift is made.

7 After section 665 insert—

Claims

665A Claims in relation to interest and gift aid income

(1) This section applies to—

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