House of Commons Amendments

Session 2012 - 13
Internet Publications
Other Bills before Parliament

55

House of Commons

Tuesday 30 October 2012

Public Bill Committee

New Amendments handed in are marked thus

Amendments which will comply with the required notice period at their next appearance

Small Charitable Donations Bill

Note

The Amendments have been arranged in accordance with the Order of the

Committee [16 October 2012].

Mr Gareth Thomas

Cathy Jamieson

17

Clause  11,  page  6,  line  28,  leave out subsection (1).

Member’s explanatory statement

To delete the requirement that the scheme can only be run by HMRC.

Mr Gareth Thomas

Cathy Jamieson

24

Clause  11,  page  6,  line  29,  after ‘HMRC’, insert ‘, the Charity Commission or any

other government department.’.

Member’s explanatory statement

Similar to purpose of amendment 17—to explore why only HMRC and not alternative bodies

should administer what is a small grants scheme.

Mr Gareth Thomas

Cathy Jamieson

25

Clause  11,  page  7,  line  5,  at end insert—

‘(f)
make provision in relation to the government department or organisation

with direct oversight of and responsibility for the top-up payments

scheme.’.

Member’s explanatory statement

Similar to purpose of amendment 17—to explore why only HMRC and not alternative bodies

Public Bill Committee: 30 October 2012
56

Small Charitable Donations Bill, continued

should administer what is a small grants scheme.

Cathy Jamieson

Mr Gareth Thomas

32

Clause  12,  page  7,  line  37,  at end insert—

‘(b)
or a charity merges with another charity,’.

Member’s explanatory statement

This amendment seeks to clarify that merged charities will also be covered by Clause 12.

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.

Mr Gareth Thomas

Cathy Jamieson

34

Clause  17,  page  9,  line  18,  at end insert—

‘(e)
industrial and provident societies that operate as charities.’.

Member’s explanatory statement

To ensure that charities incorporated as industrial and provident societies are eligible under

GASDS.

Cathy Jamieson

Mr Gareth Thomas

33

Clause  17,  page  9,  line  23,  leave out from ‘2011’ to end of line 26.

Member’s explanatory statement

Sections 7 and 356 of the Charities Act 2011 already make the necessary provisions stated here.

Accordingly, the reference to the law of Scotland (and incidentally to the law of Northern Ireland)

in Clause 17 is supererogatory.

New Clauses

Charity mergers: new charity taking over activities of one charity

Sajid Javid

NC4

To move the following Clause:—

Public Bill Committee: 30 October 2012
57

Small Charitable Donations Bill, continued

‘(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;

(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.

Public Bill Committee: 30 October 2012
58

Small Charitable Donations Bill, continued

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.

(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;

Public Bill Committee: 30 October 2012
59

Small Charitable Donations Bill, continued

(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);

“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.

Annual report

Mr Gareth Thomas

Cathy Jamieson

NC1

To move the following Clause:—

‘(1)
The Treasury must, within 12 months of this Act coming into force and annually

thereafter, prepare a report on the operation of the Small Charitable Donations

scheme and lay it before the House of Commons.

(2)
Each such report must provide details of—

(a)
the number of charities benefiting from the scheme;

(b)
total expenditure on the scheme;

(c)
the level of fraud in the scheme.’.

Post-legislative review

Mr Gareth Thomas

Cathy Jamieson

NC2

To move the following Clause:—

Public Bill Committee: 30 October 2012
60

Small Charitable Donations Bill, continued

‘The Government shall, within two years of this Act coming into force, undertake

a review of its operation and lay a report of the review before the House of

Commons.’.

Complementary Gift Aid for small donations to small charities

Mark Durkan

NC3

To move the following Clause:—

‘(1)
Smaller charities, community amateur sports clubs or recently established

charities, which do not meet the eligibility criteria in section (1) shall be eligible

to apply to HM Revenue and Customs for complementary Gift Aid for small

donations.

(2)
“Small donations” for the purposes of complementary Gift Aid shall be as

provided for in section 3 and the Schedule.

(3)
The maximum donations limit for complementary Gift Aid shall be £5,000.

(4)
The “connected charities” conditions in sections 4 and 5 shall also apply for

charities making claims for complementary Gift Aid for small donations.

(5)

(a)
HM Revenue and Customs may stipulate the supporting verification it

may require from relevant agencies or authorities or designated persons

in respect of any claims for complementary Gift Aid for small donations

to small charities;

(b)
such agencies, authorities or designated persons may include Charity

Commissions, local government officers, police or police and crime

commissioners or others designated by devolved administrations in

agreement with HM Revenue and Customs for these purposes.

(6)
This section shall come into force on 5 April 2014.’.

Member’s explanatory statement

This would provide for a separate scheme of supporting payments from HM Revenue and Customs,

in the spirit of Gift Aid, to smaller or newer charities including those formed in response to a

particular event.

Order of the House [4 September 2012]

That the following provisions shall apply to the Small Charitable Donations Bill—

Committal

1.
The Bill shall be committed to a Public Bill Committee.

Proceedings in Public Bill Committee

2.
Proceedings in the Public Bill Committee shall (so far as not previously

concluded) be brought to a conclusion on Tuesday 30 October 2012.

3.
The Public Bill Committee shall have leave to sit twice on the first day on

which it meets.

Consideration and Third Reading

4.
Proceedings on Consideration shall (so far as not previously concluded) be

Public Bill Committee: 30 October 2012
61

Small Charitable Donations Bill, continued

brought to a conclusion one hour before the moment of interruption on the

day on which those proceedings are commenced.

5.
Proceedings on Third Reading shall (so far as not previously concluded) be

brought to a conclusion at the moment of interruption on that day.

6.
Standing Order No. 83B (Programming committees) shall not apply to

proceedings on Consideration and Third Reading.

Other proceedings

7.
Any other proceedings on the Bill (including any proceedings on

consideration of Lords Amendments or on any further messages from the

Lords) may be programmed.

Order of the Committee [16 OCTOBER 2012]

That—

(1)
the Committee shall (in addition to its first meeting at 8.55 am on Tuesday 16

October) meet—

(a)
at 2.00 pm on Tuesday 16 October;

(b)
at 11.30 am and 2.00 pm on Thursday 18 October;

(c)
at 8.55 am and 2.00 pm on Tuesday 23 October;

(d)
at 11.30 am and 2.00 pm on Thursday 25 October;

(e)
at 8.55 am and 2.00 pm on Tuesday 30 October;

(2)
the Committee shall hear oral evidence on Tuesday 16 October in accordance

with the following Table:

      TABLE

Time
Witness

Until no later than 10.00 am
The United Synagogue;

Stewardship;

The Church of England

Until no later than 11.00 am
National Council for Voluntary

Organisations;

Charity Tax Group;

Small Charities Coalition

Until no later than 11.25 am
The Law Society of Scotland

Until no later than 3.00 pm
Royal National Lifeboat Institution;

WaveLength;

National Trust

Until no later than 4.00 pm
Charities Aid Foundation;

Charity Finance Group;

Institute of Fundraising

Until no later than 4.45 pm
HM Treasury;

HM Revenue and Customs

(3)
proceedings on consideration of the Bill in Committee shall be taken in the

following order: Clauses 1 to 3; the Schedule; Clauses 4 to 21; new Clauses;

new Schedules; remaining proceedings on the Bill.



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