House of Commons Amendments

Session 2012 - 13
Internet Publications
Other Bills before Parliament

51

House of Commons

Notices of Amendments

given on

Thursday 25 October 2012

For other Amendment(s) see the following page(s):

Small Charitable Donations Bill Committee 45-49

Public Bill Committee

Small Charitable Donations Bill

Sajid Javid

35

Page  7,  line  34,  leave out Clause 12.

Member’s explanatory statement

This amendment leaves out Clause 12, which is replaced by NC4. See Member’s explanatory

statement for NC4.

Charity mergers: new charity taking over activities of one charity

Sajid Javid

NC4

To move the following Clause:—

‘(1)
This section applies if, on an application made by a charity (“the new charity”),

HMRC certify that in their opinion—

(a)
the new charity was created with a view to taking over all of the activities

of one other charity (the “old charity”),

(b)
the new charity has taken over those activities,

(c)
the purposes of the new charity are substantially similar to the purposes

of the old charity, and

(d)
more than half of the managers of the new charity were old charity

managers.

(2)
For the purposes of determining whether a charity is eligible under section 2 for

a relevant tax year—

(a)
things done (or treated as having been done) by or in relation to the old

charity before the time of the merger (or after that time but in connection

with things done before that time) are to be treated as if they had instead

been done by or in relation to the new charity;

Notices of Amendments: 25 October 2012
52

Small Charitable Donations Bill, continued

(b)
the new charity is to be treated as if it had been a charity (as defined by

section 17(1)) at any time, before the time of the merger, when the old

charity was (or is treated as having been) a charity.

(3)
“Relevant tax year” means—

(a)
if the old charity does not make a successful top-up claim in respect of

small donations made in the year of the merger, that year or any later tax

year;

(b)
otherwise, any tax year after the year of the merger.

(4)
In deciding whether to issue a certificate under this section, HMRC must have

regard in particular to the extent to which the property of the old charity has been

transferred to the new charity.

(5)
HMRC must issue such guidance as they consider appropriate about the exercise

of their functions under this section.

(6)
Regulations under section 11 may in particular make provision—

(a)
about the form and contents of applications under this section;

(b)
imposing a time limit for the making of an application;

(c)
for an application to require the consent of the old charity if it is in

existence at the time of the application;

(d)
for appeals against a refusal to issue a certificate under this section.

(7)
In this section—

“managers” means the persons having the general control and management

of the administration of a charity;

“old charity manager” means a person who was a manager of the old charity

immediately before the last of the activities of the old charity were

transferred to the new charity;

“time of the merger” means the time when the new charity took over the

activities of the old charity (or, if that occurred over a period of time, the

end of that period);

“year of the merger” means the tax year in which the time of the merger

fell.’.

Member’s explanatory statement

This New Clause enables a charity created to take over the activities of another charity to benefit

from the gift aid compliance history of the other charity in deciding the new charity’s eligibility

under Clause 2.

Charity mergers: new charity taking over activities of several charities

Sajid Javid

NC5

To move the following Clause:—

‘(1)
This section applies if, on an application made by a charity (“the new charity”),

HMRC certify that in their opinion—

(a)
the new charity was created with a view to taking over all of the activities

of more than one other charity (the “old charities”),

(b)
the new charity has taken over those activities,

(c)
the purposes of the new charity are substantially similar to the purposes

of the old charities (taken together), and

(d)
more than half of the managers of the new charity were old charity

managers.

Notices of Amendments: 25 October 2012
53

Small Charitable Donations Bill, continued

(2)
For the purposes of determining whether a charity is eligible under section 2 for

a relevant tax year—

(a)
things done (or treated as having been done) by or in relation to the

relevant old charity before the time of the merger (or after that time but

in connection with things done before that time) are to be treated as if

they had instead been done by or in relation to the new charity;

(b)
the new charity is to be treated as if it had been a charity (as defined by

section 17(1)) at any time, before the time of the merger, when the

relevant old charity was (or is treated as having been) a charity.

(3)
“Relevant tax year” means—

(a)
if none of the old charities makes a successful top-up claim in respect of

small donations made in the year of the merger, that year or any later tax

year;

(b)
otherwise, any tax year after the year of the merger.

(4)
Which of the old charities is the “relevant old charity” is determined as follows—

(a)
if each of the old charities was an eligible charity for the year of the

merger, the relevant old charity is whichever of those charities would

first cease to be an eligible charity, assuming that none of them were to

make a successful gift aid exemption claim in the year of the merger or

any later tax year;

(b)
if only one of the old charities was not an eligible charity for the year of

the merger, the relevant old charity is that charity;

(c)
if more than one of the old charities was not an eligible charity for the

year of the merger, the relevant old charity is whichever of those charities

would last become an eligible charity, assuming that each of them were

to make a successful gift aid exemption claim in the year of the merger

and every later tax year;

(d)
if two or more old charities would otherwise be the relevant old charity

under paragraph (a) or (c), the new charity must elect which of those

charities is the relevant old charity.

(5)
In deciding whether to issue a certificate under this section, HMRC must have

regard in particular to the extent to which the property of the old charities has

been transferred to the new charity.

(6)
HMRC must issue such guidance as they consider appropriate about the exercise

of their functions under this section.

(7)
Regulations under section 11 may in particular make provision—

(a)
about the form and contents of applications under this section;

(b)
imposing a time limit for the making of an application;

(c)
for an application to require the consent of each old charity that is in

existence at the time of the application;

(d)
about elections under subsection (4)(d);

(e)
for appeals against a refusal to issue a certificate under this section.

(8)
In this section—

“managers” means the persons having the general control and management

of the administration of a charity;

“old charity manager” means a person who was a manager of an old charity

immediately before the last of the activities of the old charity were

transferred to the new charity;

“time of the merger” means the time when the new charity took over the

activities of the old charities (or, if that occurred over a period of time,

the end of that period);

Notices of Amendments: 25 October 2012
54

Small Charitable Donations Bill, continued

“year of the merger” means the tax year in which the time of the merger

fell.’.

Member’s explanatory statement

This amendment enables a charity created to take over the activities of two or more other charities

to benefit from the gift aid compliance history of one of those charities in deciding the new

charity’s eligibility under Clause 2.



© Parliamentary copyright	Revised 26 October 2012