|
| |
|
(3) | A financial advantage is within this subsection if (ignoring the |
| |
tainted donation provisions) it is— |
| |
(a) | a benefit associated with a gift which is a qualifying donation |
| |
for the purposes of Chapter 2 of Part 8 (gift aid), or |
| |
(b) | a benefit associated with a payment which is a qualifying |
| 5 |
payment for the purposes of Chapter 2 of Part 6 of CTA 2010 |
| |
(charitable donations relief: payments to charity). |
| |
(4) | A financial advantage is within this subsection if (ignoring the |
| |
tainted donation provisions)— |
| |
(a) | the relievable charity donation is a disposal in respect of |
| 10 |
which tax relief would be available under Chapter 3 of Part 8 |
| |
of this Act (gifts of shares, securities and real property to |
| |
charities etc) or Chapter 3 of Part 6 of CTA 2010 (charitable |
| |
donations: certain disposals to charity), and |
| |
(b) | the advantage is a benefit the value of which would be taken |
| 15 |
into account in determining the relievable amount in respect |
| |
of the disposal for the purposes of the Chapter in question. |
| |
(5) | A financial advantage is within this subsection if (ignoring the |
| |
tainted donation provisions)— |
| |
(a) | the relievable charity donation is a gift in respect of which tax |
| 20 |
relief would be available under section 108 of ITTOIA 2005 or |
| |
section 105 of CTA 2009 (gifts of trading stock to charities |
| |
| |
(b) | the advantage is a benefit attributable to the making of the |
| |
gift in respect of which an amount would be brought into |
| 25 |
account under section 109 of ITTOIA 2005 or section 108 of |
| |
CTA 2009 (receipt of benefits by donor or connected person). |
| |
| |
“benefit associated with a gift” has the meaning given by section |
| |
| 30 |
“benefit associated with a payment” has the meaning given by |
| |
| |
“the tainted donation provisions” has the meaning given by |
| |
| |
Removal of reliefs and imposition of charge to tax |
| 35 |
809ZM | Removal of income tax relief in respect of tainted donations etc |
| |
(1) | This section applies where a tainted donation is made by a person. |
| |
(2) | Where (ignoring this Chapter) income tax relief would be available |
| |
in respect of the tainted donation, that relief is not available. |
| |
| 40 |
(a) | (ignoring this Chapter) income tax relief would be available |
| |
in respect of an associated donation, and |
| |
(b) | entitlement to that relief is not withdrawn by subsection (2), |
| |
| that relief is not available. |
| |
| 45 |
|
| |
|
| |
|
“associated donation”, in relation to a tainted donation, means |
| |
a relievable charity donation made— |
| |
(a) | in accordance with the relevant arrangements, and |
| |
(b) | by a person, other than— |
| |
(i) | a qualifying charity-owned company in |
| 5 |
relation to that relievable charity donation, or |
| |
(ii) | a relevant housing provider linked (within the |
| |
meaning of section 809ZJ(7)) with the charity |
| |
to which that donation is made; |
| |
“income tax relief” means relief under— |
| 10 |
(a) | section 63(2)(a), (aa) or (ab) of CAA 2001 (gifts of plant |
| |
and machinery), so far as it applies in relation to |
| |
| |
(b) | Part 12 of ITEPA 2003 (payroll giving), |
| |
(c) | section 108 of ITTOIA 2005 (gifts of trading stock), |
| 15 |
(d) | Chapter 2 of Part 8 of this Act (gift aid), or |
| |
(e) | Chapter 3 of that Part (gifts of shares etc); |
| |
“qualifying charity-owned company” has the meaning given by |
| |
section 809ZJ(8) (except that paragraph (b) of that definition |
| |
| 20 |
“relevant housing provider” has the meaning given by section |
| |
| |
“the relevant arrangements”, in relation to a tainted donation, |
| |
means the arrangements by reference to which Conditions A |
| |
and B in section 809ZJ are met. |
| 25 |
(5) | Where entitlement to relief is withdrawn under this section in |
| |
| |
(a) | subsections (6) and (7) apply if the relief is under Chapter 2 of |
| |
| |
(b) | subsection (8) applies if the relief is under Part 12 of ITEPA |
| 30 |
| |
(6) | For the purposes of Step 2 in section 58(1), the donation is not a |
| |
qualifying donation for the purposes of Chapter 2 of Part 8. |
| |
| |
(a) | the donation remains a qualifying donation for the purposes |
| 35 |
| |
(i) | Part 10 (special rules about charitable trusts etc), |
| |
(ii) | section 899(5) (meaning of “qualifying annual |
| |
| |
(iii) | Chapter 2 of Part 11 of CTA 2010 (charitable |
| 40 |
companies: gifts and other payments), |
| |
(iv) | section 664 of that Act (community amateur sports |
| |
clubs: exemption for interest and gift aid income), and |
| |
(b) | accordingly, section 414(2)(a) (donation treated as made after |
| |
deduction of basic rate income tax) applies for the purposes |
| 45 |
of section 520(4) (income tax treated as deducted to be treated |
| |
as income tax paid by charitable trust). |
| |
(8) | The donation remains a donation for the purposes of Part 12 of |
| |
ITEPA 2003 for the purposes of— |
| |
|
| |
|
| |
|
(a) | section 521A (gifts under payroll deduction scheme: income |
| |
tax liability and exemption), and |
| |
(b) | section 472A of CTA 2010 (gifts under payroll reduction |
| |
scheme: corporation tax liability and exemption). |
| |
809ZN | Income tax charge where gift aid is withdrawn |
| 5 |
(1) | Income tax is charged under this section if— |
| |
(a) | a person makes a tainted donation in a tax year, |
| |
(b) | (ignoring this Chapter) relief would have been available |
| |
under Chapter 2 of Part 8 in respect of the tainted donation or |
| |
an associated donation (“the gift aid donation”), and |
| 10 |
(c) | the charity to which the gift aid donation is made is entitled |
| |
to claim a repayment of tax in respect of that donation. |
| |
(2) | The amount of the tax charged under this section is equal to the |
| |
amount of the repayment of tax which the charity is entitled to claim |
| |
in respect of the gift aid donation (whether or not such a claim is |
| 15 |
| |
(3) | Each of the persons mentioned in subsection (4) is liable for any tax |
| |
charged under this section, and the liability of those persons is joint |
| |
| |
| 20 |
(a) | the donor in respect of the gift aid donation, |
| |
(b) | if different, the donor in respect of the tainted donation, |
| |
(c) | each potentially advantaged person under the relevant |
| |
arrangements relating to the tainted donation, and |
| |
(d) | any charity to which the gift aid donation or (if different) the |
| 25 |
tainted donation is made, or any connected charity, which |
| |
falls within subsection (5). |
| |
(5) | A charity falls within this subsection if the charity— |
| |
(a) | is or was party to the relevant arrangements relating to the |
| |
| 30 |
(b) | was aware, at the time it entered into those arrangements, |
| |
that a linked person was entering (or had entered or was |
| |
likely to enter) into the arrangements in circumstances falling |
| |
within Condition B in section 809ZJ. |
| |
(6) | No liability to income tax arises under this section in respect of a |
| 35 |
repayment of tax, if (and to the extent that) the repayment is itself |
| |
repaid to the Commissioners for Her Majesty’s Revenue and |
| |
Customs under any other provision of the Tax Acts. |
| |
| |
“associated donation” has the same meaning as in section |
| 40 |
| |
“linked person” has the same meaning as in section 809ZJ; |
| |
“the relevant arrangements” has the same meaning as in section |
| |
| |
809ZO | Income tax charge where payment of trust income to charity |
| 45 |
(1) | Income tax is charged under this section if— |
| |
|
| |
|
| |
|
(a) | a person makes a tainted donation in a tax year, |
| |
(b) | the tainted donation or an associated donation is a payment |
| |
by the trustees of a settlement of income arising under the |
| |
settlement (“the trust donation”), and |
| |
(c) | the charity to which the trust donation is made is entitled to |
| 5 |
claim a repayment of tax in respect of that donation. |
| |
(2) | The amount of the tax charged under this section is equal to the |
| |
amount of the repayment of tax which the charity is entitled to claim |
| |
in respect of the trust donation (whether or not such a claim is made). |
| |
(3) | Each of the persons mentioned in subsection (4) is liable for any tax |
| 10 |
charged under this section, and the liability of those persons is joint |
| |
| |
| |
(a) | the trustees of the settlement who made the trust donation, |
| |
(b) | if different, the donor in respect of the tainted donation, |
| 15 |
(c) | if section 628 or 630 of ITTOIA 2005 (gifts from settlor- |
| |
interested trusts etc) applies in relation to the income out of |
| |
which the trust donation is made, the settlor in relation to the |
| |
| |
(d) | each potentially advantaged person under the relevant |
| 20 |
arrangements relating to the tainted donation, |
| |
(e) | any beneficiary of the settlement who is party to those |
| |
| |
(f) | any charity to which the trust donation or (if different) the |
| |
tainted donation is made, or any connected charity, which |
| 25 |
falls within subsection (5). |
| |
(5) | A charity falls within this subsection if— |
| |
(a) | the charity is or was party to the relevant arrangements |
| |
relating to the tainted donation, and |
| |
(b) | the charity was aware, at the time it entered into those |
| 30 |
arrangements, that a linked person was entering (or had |
| |
entered or was likely to enter) into the arrangements in |
| |
circumstances falling within Condition B in section 809ZJ. |
| |
(6) | No liability to income tax arises under this section in respect of a |
| |
repayment of tax if that repayment is itself repaid to the |
| 35 |
Commissioners for Her Majesty’s Revenue and Customs under any |
| |
other provision of the Tax Acts. |
| |
| |
“associated donation” has the same meaning as in section |
| |
| 40 |
“linked person” has the same meaning as in section 809ZJ; |
| |
“the relevant arrangements” has the same meaning as in section |
| |
| |
“settlement” and “settlor” have the same meaning as in Chapter |
| |
5 of Part 5 of ITTOIA 2005 (see section 620 of that Act). |
| 45 |
|
| |
|