Political Parties Elections and Referendums Bill - continued        House of Commons

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Operation and interpretation of Schedule
     1 - (1) This Schedule has effect for controlling donations to permitted participants other than registered parties.
      (2) The following provisions have effect for the purposes of this Schedule.
      (3) In accordance with sub-paragraph (1) "permitted participant" does not include a permitted participant which is a registered party.
      (4) "Relevant donation", in relation to a permitted participant at a referendum, means a donation which is made at any time to a permitted participant for the purpose of meeting referendum expenses.
      (5) "Donation" shall be construed in accordance with paragraphs 2 and 3.
Donations: general rules
     2. - (1) "Donation", in relation to a permitted participant, means (subject to paragraph 3)-
    (a) any gift to the permitted participant of money or other property;
    (b) any money spent (otherwise than by the permitted participant or a person authorised to act on its or his behalf) in paying any expenses incurred directly or indirectly by the permitted participant;
    (c) any money lent to the permitted participant otherwise than on commercial terms;
    (d) the provision otherwise than on commercial terms of any property, services or facilities for the use or benefit of the permitted participant (including the services of any person);
    (e) the provision of any sponsorship in relation to the permitted participant;
    (f) in the case of a permitted participant other than an individual, any subscription or other fee paid for affiliation to, or membership of, the permitted participant.
      (2) Any money or other property which is transferred to a permitted participant for a consideration which is less than the value of the money or (as the case may be) the market value of the property shall be regarded as constituting a gift to the permitted participant.
      (3) Anything given or transferred to any officer, member or agent of a permitted participant in his capacity as such (and not for his own use or benefit) is to be regarded as given or transferred to the permitted participant (and references to donations received by a permitted participant accordingly include donations so given or transferred).
      (4) In this paragraph-
    (a) any reference to anything being given or transferred to a permitted participant or any other person is a reference to its being given or transferred either directly or indirectly through any third person;
    (b) "gift" includes bequest.
Payments etc. not to be regarded as donations
     3. - (1) None of the following shall be regarded as a donation-
    (a) any grant provided out of public funds, other than a grant provided to a designated organisation by virtue of section 103(2);
    (b) the provision of any rights conferred on a designated organisation (or persons authorised by a designated organisation) by virtue of section 103(4) and Schedule 11;
    (c) the provision by an individual of his own services which he provides voluntarily in his own time and free of charge; or
    (d) any interest accruing to a permitted participant in respect of any donation which is dealt with by the permitted participant in accordance with section 49(2)(a) or (b) (as applied by paragraph 6).
      (2) Any donation whose value (as determined in accordance with paragraph 4) is less than £200 shall be disregarded.
Value of donations
     4. - (1) The value of any donation falling within paragraph 2(1)(a) shall be taken to be the market value of the property in question.
      (2) Where, however, paragraph 2(1)(a) applies by virtue of paragraph 2(2), the value of the donation shall be taken to be the difference between-
    (a) the value of the money, or the market value of the property, in question, and
    (b) the consideration provided by or on behalf of the permitted participant.
      (3) The value of any donation falling within paragraph 2(1)(c) or (d) shall be taken to be the amount representing the difference between-
    (a) the actual cost (if any) to the permitted participant, and
    (b) the cost that would have been incurred by the permitted participant had the loan been made, or the property, services or facilities been provided, on commercial terms.
      (4) The value of any donation falling within paragraph 2(1)(e) shall be taken to be the value in monetary terms of the benefit conferred by the sponsorship in question on the donee; and any such value conferred on the sponsor shall be disregarded.
      (5) Where a donation such as is mentioned in sub-paragraph (3) or (4) confers an enduring benefit on the donee over a particular period, the value of the donation-
    (a) shall be determined at the time when it is made, but
    (b) shall be so determined by reference to the total benefit accruing to the donee over that period.
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© Parliamentary copyright 1999
Prepared 21 December 1999