House of Lords Amendments

House of Lords

Session 2009 - 10
Internet Publications
Other Bills before Parliament

Finance Bill
Schedule 6 — Charities and community amateur sports clubs: definitions
Part 1 — Definition of “charity”, “charitable company” and “charitable trust”
89

      (4)
For the meaning of “charitable purpose”, see section 2 of the Charities Act
2006 (which—
(a)
applies regardless of where the body of persons or trust in question
is established, and
(b)
for this purpose forms part of the law of each part of the United
5
Kingdom (see section 80(3) to (6) of that Act)).
Jurisdiction condition
2     (1)
A body of persons or trust meets the jurisdiction condition if it falls to be
subject to the control of—
(a)
a relevant UK court in the exercise of its jurisdiction with respect to
10
charities, or
(b)
any other court in the exercise of a corresponding jurisdiction under
the law of a relevant territory.
      (2)
In sub-paragraph (1)(a) “a relevant UK court” means—
(a)
the High Court,
15
(b)
the Court of Session, or
(c)
the High Court in Northern Ireland.
      (3)
In sub-paragraph (1)(b) “a relevant territory” means—
(a)
a member State other than the United Kingdom, or
(b)
a territory specified in regulations made by the Commissioners for
20
Her Majesty's Revenue and Customs.
      (4)
Regulations under this paragraph are to be made by statutory instrument.
      (5)
A statutory instrument containing regulations under this paragraph is
subject to annulment in pursuance of a resolution of the House of Commons.
Registration condition
25
3     (1)
A body of persons or trust meets the registration condition if—
(a)
in the case of a body of persons or trust that is a charity within the
meaning of the Charities Act 1993, condition A is met, and
(b)
in the case of any other body of persons or trust, condition B is met.
      (2)
Condition A is that the body of persons or trust has complied with any
30
requirement to be registered in the register of charities kept under section 3
of the Charities Act 1993.
      (3)
Condition B is that the body of persons or trust has complied with any
requirement under the law of a territory outside England and Wales to be
registered in a register corresponding to that mentioned in sub-paragraph
35
(2).
Management condition
4     (1)
A body of persons or trust meets the management condition if its managers
are fit and proper persons to be managers of the body or trust.
      (2)
In this paragraph “managers”, in relation to a body of persons or trust,
40
means the persons having the general control and management of the
administration of the body or trust.

Finance Bill
Schedule 6 — Charities and community amateur sports clubs: definitions
Part 2 — Repeals of superseded definitions and other consequential amendments
90

Periods over which management condition treated as met
5     (1)
This paragraph applies in relation to any period throughout which the
management condition is not met.
      (2)
The management condition is treated as met throughout the period if the
Commissioners for Her Majesty’s Revenue and Customs consider that—
5
(a)
the failure to meet the management condition has not prejudiced the
charitable purposes of the body or trust, or
(b)
it is just and reasonable in all the circumstances for the condition to
be treated as met throughout the period.
Publication of names and addresses of bodies or trusts regarded by HMRC as charities
10
6
Her Majesty’s Revenue and Customs may publish the name and address of
any body of persons or trust that appears to them to meet, or at any time to
have met, the definition of a charity in paragraph 1.
Enactments to which this Part applies
7
The enactments to which this Part applies are the enactments relating to—
15
(a)
income tax
(b)
capital gains tax,
(c)
corporation tax,
(d)
value added tax,
(e)
inheritance tax,
20
(f)
stamp duty,
(g)
stamp duty land tax, and
(h)
stamp duty reserve tax.
Part 2
Repeals of superseded definitions and other consequential amendments
25
FA 1982
8
In section 129(1) of FA 1982 (stamp duty: exemption from duty on grants,
transfers to charities etc), for “a body of persons established for charitable
purposes only or to the trustees of a trust so established” substitute “a
charitable company or to the trustees of a charitable trust”.
30
FA 1983
9
In section 46(3) of FA 1983 (Historic Buildings and Monuments Commission
for England) for “a body of persons established for charitable purposes only”
substitute “a charitable company”.
IHTA 1984
35
10
In section 272 of IHTA 1984 (general interpretation), omit the definitions of
“charity” and “charitable”.

Finance Bill
Schedule 6 — Charities and community amateur sports clubs: definitions
Part 2 — Repeals of superseded definitions and other consequential amendments
91

FA 1986
11
In section 90(7) of FA 1986 (stamp duty reserve tax: exceptions from
principal charge)—
(a)
in paragraph (a), for “a body of persons established for charitable
purposes only” substitute “a charitable company”, and
5
(b)
in paragraph (b), for “a trust so established” substitute “a charitable
trust”.
FA 1989
12
In paragraph 4 of Schedule 5 to FA 1989 (employee share ownership trusts),
omit sub-paragraph (10).
10
TCGA 1992
13    (1)
TCGA 1992 is amended as follows.
      (2)
In section 222(8B)(b)(iii) (relief on disposal of private residence), for
“established for charitable purposes only” substitute “a charitable
company”.
15
      (3)
In section 256 (charities), omit subsections (6) and (8).
      (4)
In section 256C (attributing gains to the non-exempt amount: charitable
companies), omit subsection (6).
      (5)
In section 256D (how gains are attributed to the non-exempt amount:
charitable companies), omit subsection (7).
20
F(No.2)A 1997
14
In section 35(3)(a) of F(No.2)A 1997 (transitional relief for charities) omit “(as
defined in section 506(1) of the Taxes Act 1988)”.
FA 1999
15    (1)
Schedule 19 to FA 1999 (stamp duty and stamp duty reserve tax: unit trusts)
25
is amended as follows.
      (2)
In paragraph 6(3)—
(a)
in paragraph (a), for “a body of persons established for charitable
purposes only” substitute “a charitable company”, and
(b)
in paragraph (b), for “a trust established for those purposes only”
30
substitute “a charitable trust”.
      (3)
In paragraph 15(c), for “bodies of persons established for charitable
purposes only or trustees of trusts so established” substitute “charitable
companies or trustees of charitable trusts”.
CAA 2001
35
16
In section 63(2) of CAA 2001 (cases in which disposal value is nil)—
(a)
in paragraph (a), omit “within the meaning of Part 10 of ITA 2007
(see section 519 of that Act)”, and

Finance Bill
Schedule 6 — Charities and community amateur sports clubs: definitions
Part 2 — Repeals of superseded definitions and other consequential amendments
92

(b)
in paragraph (aa), omit “within the meaning of Part 11 of CTA 2010
(see section 467 of that Act)”.
ITEPA 2003
17    (1)
ITEPA 2003 is amended as follows.
      (2)
In section 99(3)(b)(ii) (accommodation provided for performance of duties),
5
for “established for charitable purposes only” substitute “a charitable
company”.
      (3)
In section 216(3)(b) (provisions not applicable to lower-paid employments)
for “established for charitable purposes only” substitute “a charitable
company”.
10
      (4)
In section 223(7)(b)(ii) (payments on account of director’s tax other than by
the director), for “established for charitable purposes only” substitute “a
charitable company”.
      (5)
In section 290(5) (accommodation benefits of ministers of religion), omit the
definition of “charity”.
15
      (6)
In section 351 (expenses of ministers of religion), omit subsection (5).
      (7)
In section 714(2) (payroll giving: meaning of “donation”), in the definition of
“charity”, omit “means any body of persons or trust established for
charitable purposes only and”.
FA 2003
20
18
Schedule 8 to FA 2003 (SDLT: charities relief) is amended as follows.
19
In paragraph 1 (charities relief), omit sub-paragraph (4).
20
In paragraph 4 (charitable trusts), in sub-paragraph (2), omit “and “charity”
has the same meaning as in paragraph 1”.
ITTOIA 2005
25
21    (1)
ITTOIA 2005 is amended as follows.
      (2)
In section 410(3)(b) (when stock dividend income arises), for “trust
established for charitable purposes only” substitute “charitable trust”.
      (3)
In section 545(1) (definitions for Chapter 9 of Part 4), omit the definition of
“charitable trust”.
30
      (4)
In section 568(3) (special rule for certain income of trustees), for “trust
established for charitable purposes” substitute “charitable trust”.
      (5)
In Part 2 of Schedule 4 (index of defined expressions)—
(a)
in the entry for “charitable trust (in Chapter 9 of Part 4)”—
(i)
omit “(in Chapter 9 of Part 4)”, and
35
(ii)
for “section 545(1)” substitute “paragraph 1 of Schedule 6 to
FA 2010”, and
(b)
in the entry for “charity”, for “section 989 of ITA 2007” substitute
“paragraph 1 of Schedule 6 to FA 2010”.

Finance Bill
Schedule 6 — Charities and community amateur sports clubs: definitions
Part 2 — Repeals of superseded definitions and other consequential amendments
93

F(No.2)A 2005
22
In section 18(3)(b)(i) of F(No.2)A 2005 (authorised unit trusts and OEICS:
specific powers) omit “(within the meaning of section 989 of ITA 2007)”.
ITA 2007
23    (1)
ITA 2007 is amended as follows.
5
      (2)
In section 479(1)(b) (special rates for trustees’ income), for “trust established
for charitable purposes only” substitute “charitable trust”.
      (3)
In section 481(1)(c) (other special rates for trustees), for “trust established for
charitable purposes only” substitute “charitable trust”.
      (4)
Omit section 519 (meaning of “charitable trust”).
10
      (5)
In section 873(2) (discretionary or accumulation settlements), in paragraphs
(a) and (b), for “trust established for charitable purposes only” substitute
“charitable trust”.
      (6)
In section 989 (definitions), omit the definition of “charity”.
      (7)
In Schedule 4 (index of defined expressions)—
15
(a)
in the entry for “charitable trust (in Part 10)”—
(i)
omit “(in Part 10)”, and
(ii)
for “section 519” substitute “paragraph 1 of Schedule 6 to FA
2010”, and
(b)
in the entries for “charity”, “charity (in Chapter 2 of Part 8)” and
20
“charity (in Chapter 3 of Part 8)”, for “section 989” substitute
“paragraph 1 of Schedule 6 to FA 2010”.
FA 2008
24
In paragraph 60(2) of Schedule 36 to FA 2008 (references to carrying on a
business), omit the definition of “charity”.
25
CTA 2009
25    (1)
CTA 2009 is amended as follows.
      (2)
In section 1319 (other definitions), omit the definition of “charity”.
      (3)
In Schedule 4 (index of defined expressions), in the entry for “charity”, for
“section 1319” substitute “paragraph 1 of Schedule 6 to FA 2010”.
30
FA 2009
26
In paragraph 8 of Schedule 49 to FA 2009 (general interpretation), omit the
definition of “charity”.
CTA 2010
27    (1)
CTA 2010 is amended as follows.
35
      (2)
In section 202 (meaning of “charity” in Chapter 2 of Part 6)—
(a)
for “means” substitute “includes”, and

Finance Bill
Schedule 6 — Charities and community amateur sports clubs: definitions
Part 3 — Meaning of “community amateur sports club”
94

(b)
omit paragraph (a).
      (3)
In section 217 (meaning of “charity” in Chapter 3 of Part 6)—
(a)
for “means” substitute “includes”, and
(b)
omit paragraph (a).
      (4)
Omit section 467 (meaning of “charitable company” in Part 11).
5
      (5)
In section 610(2)(a) (discretionary payments by trustees to companies), omit
“as defined in section 467”.
      (6)
In section 1119 (definitions), omit the definition of “charity”.
      (7)
In Schedule 4 (index of defined expressions)—
(a)
in the entry for “charitable company (in Part 11)”—
10
(i)
omit “(in Part 11)”, and
(ii)
for “section 467” substitute “paragraph 1 of Schedule 6 to FA
2010”,
(b)
in the entry for “charity (except in Chapters 2 and 3 of Part 6)” for
“section 1119” substitute “paragraph 1 of Schedule 6 to FA 2010”,
15
(c)
in the entry for “charity (in Chapter 2 of Part 6)”, for “section 202”
substitute “paragraph 1 of Schedule 6 to FA 2010 (and see section 202
of this Act)”, and
(d)
in the entry for “charity (in Chapter 3 of Part 6)”, for “section 217”
substitute “paragraph 1 of Schedule 6 to FA 2010 (and see section 217
20
of this Act)”.
TIOPA 2010
28
In section 326(3) of TIOPA 2010 (charities), omit the definition of “charity”
and the “and” immediately after it.
Power to make further consequential provision
25
29    (1)
The Commissioners for Her Majesty’s Revenue and Customs may by order
make such further consequential, incidental, supplemental, transitional or
transitory provision or saving as appears appropriate in consequence of, or
otherwise in connection with, Part 1.
      (2)
An order under this paragraph may—
30
(a)
make different provision for different purposes, and
(b)
make provision repealing, revoking or otherwise amending any
enactment or instrument (whenever passed or made).
      (3)
An order under this paragraph is to be made by statutory instrument.
      (4)
A statutory instrument containing an order under this paragraph is subject
35
to annulment in pursuance of an order of the House of Commons.
Part 3
Meaning of “community amateur sports club”
30
Chapter 9 of Part 13 of CTA 2010 (community amateur sports clubs) is
amended as follows.
40

Finance Bill
Schedule 6 — Charities and community amateur sports clubs: definitions
Part 4 — Commencement
95

31
In section 658(1) (meaning) omit the “and” at the end of paragraph (b) and
after paragraph (c) insert—
“(d)
meets the location condition (see section 661A), and
(e)
meets the management condition (see section 661B).”
32
After section 661 insert—
5
“661A
The location condition
(1)
A club meets the location condition for the purposes of section 658
if—
(a)
it is established in a member State or a relevant territory, and
(b)
the facilities that it provides for eligible sports are all located
10
in a single member State or relevant territory.
(2)
In this section “relevant territory” means a territory specified in
regulations under paragraph 2(3)(b) of Schedule 6 to FA 2010
(definition of “charity” etc).
661B
The management condition
15
(1)
A club meets the management condition for the purposes of section
658 if its managers are fit and proper persons to be managers of the
club.
(2)
In this paragraph “managers”, in relation to a club, means the
persons having the general control and management of the
20
administration of the club.
661C
Periods over which management condition treated as met
(1)
This paragraph applies in relation to any period throughout which
the management condition is not met.
(2)
The management condition is treated as met throughout the period
25
if the Commissioners for Her Majesty’s Revenue and Customs
consider that—
(a)
the failure to meet the management condition has not
prejudiced the purposes of the club, or
(b)
it is just and reasonable in all the circumstances for the
30
condition to be treated as met throughout the period.”
Part 4
Commencement
Commencement of Part 1
33    (1)
Part 1 is treated as having come into force on 6 April 2010.
35
      (2)
But the definitions of “charity”, “charitable company” and “charitable trust”
in that Part do not apply for the purposes of an enactment in relation to
which, on that date, another definition applies until such time as that other
definition ceases to have effect on the coming into force of provision made
by or under Part 2.
40
      (3)
For provision about the coming into force of provision made by that Part, see
paragraph 34.



© Parliamentary copyright 2010	Revised 8 April 2010