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| Loans to charities. |
45. - (1) In Chapter IA of Part XV of the Taxes Act 1988 "settlement" does not include any arrangement so far as it consists of a loan of money made by an individual to a charity either-
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(a) for no consideration; or |
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(b) for a consideration which consists only of interest. |
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(2) In this section "charity" has the same meaning as in section 44 above.
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(3) This section has effect in relation to income arising on or after 6th April 2000 on loans made before, as well loans made on or after, that date.
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| Exemption for small trades etc. |
46. - (1) Subject to subsection (2) below, exemption from tax under Case I or VI of Schedule D shall be granted, on a claim made in that behalf to the Board, in respect of any income of a charity if the requirements of subsection (3) below are satisfied with respect to the income.
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(2) Exemption shall not be granted under subsection (1) above in respect of income which is chargeable to tax under Case VI of Schedule D by virtue of any of the following-
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(a) section 30 of the Taxes Management Act 1970; |
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(b) sections 214, 412, 547(1)(b) and (6), 553(6), 660C, 677, 703, 776, 788, 790 and 804 of the Taxes Act 1988; |
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(c) paragraph 14 of Schedule 4 to the Finance (No. 2) Act 1997; |
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(d) paragraph 52(4) of Schedule 18, and paragraph 13(7) of Schedule 19, to the Finance Act 1998; and |
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(e) any other enactment specified in an order made by the Treasury. |
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(3) The requirements of this subsection are satisfied with respect to any income for a chargeable period if it is applied solely for the purposes of the charity and either-
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(a) the charity's gross income for the chargeable period does not exceed the requisite limit; or |
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(b) the charity had, at the beginning of the period, a reasonable expectation that its gross income for the period would not exceed that limit. |
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(4) Subject to subsection (5) below, the requisite limit is whichever is the greater of-
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(b) whichever is the lesser of £50,000 and 25% of all of the charity's incoming resources for the chargeable period. |
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(5) For a chargeable period of less than twelve months, the amounts of £5,000 and £50,000 specified in subsection (4) above shall be proportionally reduced.
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(6) In this section-
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"charity" means any body of persons or trust established for charitable purpose only; |
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"gross income", in relation to a charity, means income before deduction of any expenses; |
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"income", in relation to a charity, means any profits or gains or other income which is chargeable to tax under Case I or VI of Schedule D and which is not, apart this section, exempted from tax under that Case. |
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(7) This section applies for the year 2000-01 and subsequent years of assessment or, in the case of charities which are companies, for accounting periods beginning on or after 1st April 2000.
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Employee share ownership |
| Employee share ownership plans. |
47. Schedule 8 to this Act (employee share ownership plans) shall have effect.
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| Relief for transfers to employee share ownership plans. |
48. - (1) In the Taxation of Chargeable Gains Act 1992, after section 236 insert-
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"Employee share ownership plans |
| Relief for transfers to employee share ownership plans |
236A. Schedule 7C (which makes provision for roll-over relief where shares are transferred to an approved employee share ownership plan) shall have effect.".
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(2) After Schedule 7B to that Act insert the Schedule 7C set out in Schedule 9 to this Act.
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| Phasing out of approved profit sharing schemes. |
49. - (1) The Board shall not approve a profit sharing scheme under Schedule 9 to the Taxes Act 1988 (approval of share option schemes and profit sharing schemes) unless the application for approval is received by the Board before 6th April 2001.
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(2) For the purposes of subsection (1) an application for approval which is not accompanied by the particulars and evidence referred to in paragraph 1(2) of that Schedule is not regarded as received by the Board until the required particulars and evidence have been received by them.
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(3) In section 186 of that Act (approved profit sharing schemes), in subsection (1) (under which the section applies to appropriations of shares made after 5th April 1979) after "5th April 1979" insert "and before 6th April 2002".
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