Finance Bill (HC Bill 49)

(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)
5of 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.

10The 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
15Ministers 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
20Northern 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
25Ministers 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) 30An 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) 35An 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
40and 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
45references 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) 5if 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 10In this Schedule—

• “the Commissioners” means the Commissioners for Her Majesty’s
  Revenue and Customs;

• “company” has the meaning given in section 992 of ITA 2007;

• “corporation tax” includes any amount assessable or chargeable as if it
  15were corporation tax;

• “HMRC” means Her Majesty’s Revenue and Customs;

• “late payment interest” means interest under section 101 of FA 2009, or
  under or by virtue of Part 9 of TMA 1970, on amounts payable to
  HMRC;

• 20“late payment penalty” means a penalty under Schedule 56 to FA 2009.

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

25IHTA 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
30in 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
352012 (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
5entitled 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
10circumstances 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) 15Section 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
20entitled 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
25circumstances 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
3032A(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
3532A(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) 40tax 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) 45For these purposes—

Finance BillPage 363

• “A” is the amount of duty or tax that becomes so chargeable as a result
  of the gift (absent this paragraph), and

• “B” is what that amount would be if the effective rate at which the duty
  or tax is charged were the highest rate specified in column 3 of the
  5Table in Schedule 1 to IHTA 1984.

(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
10tax 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.

15TCGA 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).”

20ITA 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) 25it 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) 30Where 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 35Commencement

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
40appoint 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
5(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
10paid 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) 15section 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) 20In 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) 25any 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) 30In 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) 35section 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
5relief) 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
10provision,

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) 15section 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
20amateur 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
25individual 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) 30The 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.

35But 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—

(a) 5claims for repayment of income tax treated as having been
paid by virtue of section 661D (tax treatment of gifts
qualifying for gift aid relief),

(b) claims for amounts to be exempt from tax by virtue of section
664 (exemption for interest and gift aid income), and

(c) 10claims for repayment of income tax deducted at source from
interest income (within the meaning of that section) which is
exempt from tax by virtue of that section.

(2) A claim to which this section applies may be made—

(a) to an officer of Revenue and Customs, or

(b) 15by being included in the claimant’s company tax return.

(3) In this section—

• “free-standing claim” means a claim made as mentioned in
  subsection (2)(a), and

• “tax return claim” means a claim made as mentioned in
  20subsection (2)(b).

(4) The Commissioners for Her Majesty’s Revenue and Customs may by
regulations make provision—

(a) limiting the number of free-standing claims that may be
made by a person in a tax year, or

(b) 25requiring a claim for an amount below an amount specified
in the regulations to be made as a tax return claim.

(5) The regulations may make different provision for different cases or
purposes.”

8 In consequence of the provision made by paragraph 6, in section 413 of ITA
302007 (overview of gift aid relief), after subsection (5) insert—

“(6) For related reliefs for community amateur sports clubs see Chapter 9
of Part 13 of CTA 2010.”

Treatment of income tax deducted or repaid

9 In section 59B of TMA 1970 (payment of income tax and capital gains tax), in
35subsection (7), at the end insert—

“But such a reference does not include income tax repaid on a claim
for repayment of income tax which—

(a) is treated as having been paid by virtue of section 520(4) of
ITA 2007 (gift aid relief: income tax treated as paid by trustees
40of charitable trust), or

(b) has been deducted at source from income to which section
532, 533, 536 or 537 of that Act (certain sources of income
exempt from income tax) applies.”

10 (1) Section 967 of CTA 2010 (set-off of income tax deductions against
corporation tax: payments received by UK resident companies) is amended
as follows.

(2) After subsection (4) insert—

“(5) 5The reference in subsection (1) to a payment received by a company
does not include a reference to a payment which is exempt from tax
by virtue of any of the following—

(none) section 472 (gifts qualifying for gift aid relief: charitable
companies);

(none) 10section 475 (gifts qualifying for gift aid relief: eligible bodies);

(none) section 664 (exemption for interest and gift aid income:
community amateur sports clubs).”

(3) In subsection (5) (as inserted by sub-paragraph (2)), after the entry for
section 475 insert—

“(none) 15section 486 (investment income and non-trading profits
from loan relationships);

(none) section 487 (public revenue dividends);

(none) section 488 (certain miscellaneous income);

(none) section 489 (income from estates in administration);”.

20Administration of claims under ITA 2007

11 (1) Section 42 of TMA 1970 (procedure for making claims etc) is amended as
follows.

(2) In subsection (2), for “and (3ZA)” substitute “to (3ZB)”.

(3) In subsection (3ZA), for the words from “by virtue of” to the end substitute
25“by virtue of—

“(a) section 521(4) of ITA 2007 (gifts entitling donor to gift aid
relief: charitable trusts),

(b) section 532 of that Act (exemption for savings and investment
income),

(c) 30section 533 of that Act (exemption for public revenue
dividends),

(d) section 536 of that Act (exemption for certain miscellaneous
income), or

(e) section 537 of that Act (exemption for income from estates in
35administration).”

(4) After subsection (3ZA) insert—

“(3ZB) Subsection (2) also does not apply in relation to any claim for
repayment of an amount of income tax which—

(a) is treated as having been paid by virtue of section 520(4) of
40ITA 2007 (gift aid relief: income tax treated as paid by trustees
of charitable trust), or

(b) has been deducted at source from income to which any of the
provisions mentioned in paragraphs (b) to (e) of subsection
(3ZA) applies.”

12 In consequence of the amendments made by paragraph 11, in Schedule 8 to
FA 2010 omit paragraph 4(2).

Administration of claims under CTA 2010

13 Schedule 18 to FA 1998 (company tax returns, assessments and related
5matters) is amended as follows.

14 (1) Paragraph 9 (claims that cannot be made without a return) is amended as
follows.

(2) In sub-paragraph (2), at the end insert—

“This is subject to sub-paragraphs (2A) and (2B).”

(3) 10For sub-paragraph (2A) substitute—

“(2A) This paragraph does not apply to a claim by a company for
repayment of income tax treated as having been paid by virtue
of—

(a) section 471 of the Corporation Tax Act 2010 (gifts
15qualifying for gift aid relief: charitable companies),

(b) section 475 of that Act (gifts qualifying for gift aid relief:
eligible bodies), or

(c) section 661D of that Act (gifts qualifying for gift aid relief:
community amateur sports clubs).

(2B) 20This paragraph also does not apply to a claim by a company for
repayment of income tax deducted at source from income which
is exempt from tax by virtue of—

(a) section 486 of the Corporation Tax Act 2010 (investment
income and non-trading profits from loan relationships),

(b) 25section 487 of that Act (public revenue dividends),

(c) section 488 of that Act (certain miscellaneous income),

(d) section 489 of that Act (income from estates in
administration), or

(e) section 664 of that Act (interest and gift aid income:
30community amateur sports clubs).”

15 (1) Paragraph 57 (claims or elections affecting a single accounting period) is
amended as follows.

(2) In sub-paragraph (1), at the end insert—

“This is subject to sub-paragraphs (1A) to (1C).”

(3) 35For sub-paragraph (1A) substitute—

“(1A) This paragraph does not apply to a claim by a company for
repayment of income tax treated as having been paid by virtue
of—

(a) section 471 of the Corporation Tax Act 2010 (gifts
40qualifying for gift aid relief: charitable companies),

(b) section 475 of that Act (gifts qualifying for gift aid relief:
eligible bodies), or

(c) section 661D of that Act (gifts qualifying for gift aid relief:
community amateur sports clubs).

(1B) This paragraph also does not apply to a claim by a company for
repayment of income tax deducted at source from income which
is exempt from tax by virtue of—

(a) section 486 of the Corporation Tax Act 2010 (investment
5income and non-trading profits from loan relationships),

(b) section 487 of that Act (public revenue dividends),

(c) section 488 of that Act (certain miscellaneous income),

(d) section 489 of that Act (income from estates in
administration), or

(e) 10section 664 of that Act (interest and gift aid income:
community amateur sports clubs).

(1C) This paragraph also does not apply to a claim by a company for an
amount to be exempt from tax by virtue of—

(a) section 472 of the Corporation Tax Act 2010 (gifts
15qualifying for gift aid relief: charitable companies),

(b) section 475 of that Act (gifts qualifying for gift aid relief:
eligible bodies), or

(c) any of the provisions mentioned in sub-paragraph (1B).”

16 In consequence of the amendments made by paragraphs 14 and 15, in
20Schedule 8 to FA 2010 omit paragraph 6.

Application

17 (1) The amendments made by paragraphs 1 to 4 and 7 are treated as having
come into force on 8 April 2010.

(2) The amendments made by paragraphs 6, 8 and 10 are treated as having
25effect—

(a) for corporation tax purposes, for accounting periods ending on or
after 1 April 2010, and

(b) for income tax purposes, for the tax year 2010-11 and subsequent tax
years.

(3) 30The amendment made by paragraph 9 has effect in relation to income tax
repaid on gifts made or income received on or after 6 April 2006.

(4) An amendment corresponding to that made by paragraph 10(2) is to be
treated as having been made in ICTA and having had effect in relation to—

(a) gifts made by individuals to charitable companies and eligible
35bodies on or after 6 April 2000 which were not covenanted payments,

(b) covenanted payments falling to be made by individuals to charitable
companies and eligible bodies on or after that date, and

(c) payments made to community amateur sports clubs on or after 6
April 2002.

(5) 40An amendment corresponding to that made by paragraph 10(3) is to be
treated as having been made in ICTA and having had effect in relation to
payments of income made on or after 1 April 2006.