House of Commons Public Bill Committee Proceedings

Session 2012 - 13
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Other Bills before Parliament

9

House of Commons

Thursday 25 October 2012

Public Bill Committee Proceedings

Small Charitable Donations Bill

[Seventh and Eighth Sittings]

Clause No.5

Amendment (No. 2) proposed, in page 3, line 30, leave out subsection (4) and insert—

‘(4)
In the application of section 993 for the purposes of subsection (3)—

(a)
a charity that is a trust is to be treated as if it were a company (and

accordingly a person), including in this subsection;
5
(b)
a charity that is a trust has “control” of another person if the trustees (in

their capacity as trustees of the trust) have, or any of them has, control of

the person;

(c)
a person (other than a charity regulator) has “control” of a charity that is

a trust if—
10
(i)
the person is a trustee of the charity and some or all of the powers

of the trustees of the charity could be exercised by the person

acting alone or by the person acting together with any other

persons who are trustees of the charity and who are connected

with the person,
15
(ii)
the person, alone or together with other persons, has power to

appoint or remove a trustee of the charity, or

(iii)
the person, alone or together with other persons, has any power

of approval or direction in relation to the carrying out by the

trustees of any of their functions.
20
(4A)
A charity that is a trust is also to be regarded as connected with another charity

that is a trust at a time for the purposes of this section if, at that time, at least half

of the trustees of one of the charities are—

(a)
trustees of the other charity,
25
(b)
persons who are connected with persons who are trustees of the other

charity, or

(c)
a combination of both.

(4B)
In determining whether a person is connected with another person for the

purposes of subsection (4)(c)(i) or (4A)(b), apply section 993 of the Income Tax

Act 2007, with the omission of subsection (3) of that section (and without the

modifications in subsection (4) above).’.(Sajid Javid).

Public Bill Committee Proceedings: 25 October 2012
10

Small Charitable Donations Bill, continued

Question proposed, That the Amendment be made.

Agreed to

As an Amendment to Sajid Javid’s proposed Amendment (No. 2):—

Cathy Jamieson

Mr Gareth Thomas

Not moved  (a)

Line  24,  leave out subparagraphs (b) and (c).

Sajid Javid

Agreed to  3

Clause  5,  page  3,  line  38,  at end insert—

‘( )
The Treasury may by order amend this Act so as to change the circumstances in

which a charity is connected with another charity in a tax year for the purposes of

the Act.’.

Clause, as amended, Agreed to.

Cathy Jamieson

Mr Gareth Thomas

Withdrawn  27

Clause  6,  page  4,  line  10,  leave out paragraph (a) and insert—

‘(a)
the sum of the small donations that are made to the charity in the tax year

for the purposes of running the charity’s charitable activities from a

community building, or’.

Sajid Javid

Agreed to  4

Clause  6,  page  4,  line  11,  after ‘year’ insert ‘by group members’.

Cathy Jamieson

Mr Gareth Thomas

Not called  28

Clause  6,  page  4,  line  14,  leave out subsections (4) and (5).

Sajid Javid

Agreed to  5

Clause  6,  page  4,  line  20,  after ‘year’ insert ‘by group members’.

Sajid Javid

Agreed to  6

Clause  6,  page  4,  line  21,  at end insert—

‘( )
“Group member”, in relation to a charitable activity run by a charity in a

community building, means a member of the group of people with whom the

charity is carrying out the activity.’.

Public Bill Committee Proceedings: 25 October 2012
11

Small Charitable Donations Bill, continued

Clause, as amended, Agreed to.

Cathy Jamieson

Mr Gareth Thomas

Not called  29

Clause  7,  page  4,  leave out lines 24 to 42 and insert—

‘7
Meaning of “running charitable activities from a community building” etc

(1)
For the purposes of this Act a charity “runs” charitable activities from a

community building in a tax year if the activity is of a kind that the charity makes

available to the public or a section of the public.’.

Sajid Javid

Agreed to  7

Clause  7,  page  4,  line  26,  leave out from ‘if’ to ‘(and’ in line 28 and insert ‘, on 6 or

more occasions in the tax year—

(a)
it carries out a charitable activity with a group of people in the

community building, at least 10 of whom are in the class of people for

whose benefit the charitable activity is being carried out,

(b)
the activity is of a kind that the charity makes available to the public or a

section of the public, and

(c)
none of the group is required to pay to access the building, or the part of

the building, in which the activity is carried out;’.

Sajid Javid

Agreed to  8

Clause  7,  page  4,  line  31,  leave out paragraph (a).

Sajid Javid

Agreed to  9

Clause  7,  page  4,  line  35,  leave out subsection (3).

Sajid Javid

Agreed to  10

Clause  7,  page  4,  leave out line 42 and insert ‘subsection (1)’.

Clause, as amended, Agreed to.

Cathy Jamieson

Mr Gareth Thomas

Not called  30

Clause  8,  page  5,  leave out lines 5 to 8 and insert—

‘(1)
In this Act “community building”—

(a)
means a building (such as a village hall, town hall or place of worship),

or those parts of it, to which the public or a section of the public have

access at some or all times, or

Public Bill Committee Proceedings: 25 October 2012
12

Small Charitable Donations Bill, continued

(b)
for charities that do not run their charitable activities in a community

building, a building (such as an office), or those parts of it, from which a

charity runs its charitable activities, but’.

Sajid Javid

Agreed to  11

Clause  8,  page  5,  line  9,  leave out from ‘include’ to end of line 10 and insert ‘any

parts of a building excluded by subsection (1A) or (1B)’.

Sajid Javid

Agreed to  12

Clause  8,  page  5,  line  10,  at end insert—

‘(1A)
Any parts of a building that are used wholly or mainly for residential purposes or

the sale or supply of goods are excluded.

(1B)
Any parts of a building that are used wholly or mainly for other commercial
5
purposes are excluded, except at any times when—

(a)
a charity is carrying out a charitable activity in those parts, and

(b)
the parts are available for use exclusively by the charity in carrying out

the activity.’.

As an Amendment to Sajid Javid’s proposed Amendment (No. 12):—

Cathy Jamieson

Mr Gareth Thomas

Withdrawn  (a)

Line  2,  leave out ‘residential purposes or’.

Clause, as amended, Agreed to.

Cathy Jamieson

Mr Gareth Thomas

Withdrawn  31

Clause  9,  page  6,  line  19,  at end add—

‘(8)

(a)
The Treasury must, within 24 months of this Act coming into force,

prepare a report assessing the impact of the community buildings

provisions on the ability of charities to benefit from the Gift Aid Small

Donations Scheme and lay it before the House of Commons’.

[Adjourned until Tuesday 30 October at 8.55 am



© Parliamentary copyright	Revised 26 October 2012