Session 2012 - 13
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13

 

House of Commons

 
 

Tuesday 30 October 2012

 

Public Bill Committee Proceedings

 

Small Charitable Donations Bill


 

[Ninth and Tenth Sittings]


 

Clause 9 Agreed to.

 

Clause 10 Agreed to.

 

Mr Gareth Thomas

 

Cathy Jamieson

 

Not called  17

 

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

 

Mr Gareth Thomas

 

Cathy Jamieson

 

Not called  24

 

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

 

other government department.’.

 

Mr Gareth Thomas

 

Cathy Jamieson

 

Not called  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.’.

 

Clause Agreed to.

 


 

Cathy Jamieson

 

Mr Gareth Thomas

 

Withdrawn  32

 

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

 

‘(b)    

or a charity merges with another charity,’.


 
 

Public Bill Committee Proceedings: 30 October 2012        

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Small Charitable Donations Bill, continued

 
 

Sajid Javid

 

Not selected  35

 

Page  7,  line  34,  leave out Clause 12.

 

Clause 12 Negatived.

 

Clauses 13 to 16 Agreed to.

 


 

Mr Gareth Thomas

 

Cathy Jamieson

 

Withdrawn  34

 

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

 

‘(e)    

industrial and provident societies that operate as charities.’.

 

Cathy Jamieson

 

Mr Gareth Thomas

 

Withdrawn  33

 

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

 

Clause Agreed to.

 

Clauses 18 to 21 Agreed to.

 


 

New Clauses

 

Charity mergers: new charity taking over activities of one charity

 

Sajid Javid

 

Added  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;


 
 

Public Bill Committee Proceedings: 30 October 2012        

15

 

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.’.

 


 

Charity mergers: new charity taking over activities of several charities

 

Sajid Javid

 

Added  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—


 
 

Public Bill Committee Proceedings: 30 October 2012        

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Small Charitable Donations Bill, continued

 
 

(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);


 
 

Public Bill Committee Proceedings: 30 October 2012        

17

 

Small Charitable Donations Bill, continued

 
 

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

 

fell.’.

 


 

Annual report

 

Mr Gareth Thomas

 

Cathy Jamieson

 

Negatived on division  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

 

Not called  NC2

 

To move the following Clause:—

 

‘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

 

Withdrawn  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.


 
 

Public Bill Committee Proceedings: 30 October 2012        

18

 

Small Charitable Donations Bill, continued

 
 

(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.’.

 

Bill, as amended, to be reported.

 


 
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Revised 31 October 2012