Source: http://www.legislation.gov.uk/ukpga/2011/11/schedule/3?view=extent
Timestamp: 2013-05-25 16:41:01
Document Index: 676198195

Matched Legal Cases: ['art 1', 'art 13', 'art 12', 'art 8', 'art 2', 'art 21', 'art 21', 'art(1', 'art 6', 'art 3', 'art 4', 'art 13', 'art 13', 'art 13', 'art 13', 'art 13', 'art 13', 'art 1', 'art 21', 'art 21', 'art 21', 'art 21', 'art 21', 'art 21', 'art 21', 'art 5', 'arts 1']

Skip to main contentSkip to navigationlegislation.gov.ukThe National ArchivesHelpSite MapAccessibilityContact UsHomeAbout UsBrowse LegislationNew LegislationChanges to LegislationSearch LegislationSearch LegislationTitle: (or keywords in the title)Year:Number:Type:All Legislation (excluding draft)All Primary Legislation UK Public General Acts UK Local Acts Acts of the Scottish Parliament Acts of the National Assembly for Wales Measures of the National Assembly for Wales Church Measures Acts of the Northern Ireland Assembly Acts of the Old Scottish Parliament Acts of the English Parliament Acts of the Old Irish Parliament Acts of the Parliament of Great Britain Northern Ireland Orders in Council Measures of the Northern Ireland Assembly Acts of the Northern Ireland ParliamentAll Secondary Legislation UK Statutory Instruments Wales Statutory Instruments Scottish Statutory Instruments Northern Ireland Statutory Rules Church Instruments UK Ministerial Orders UK Statutory Rules and OrdersAll Draft Legislation UK Draft Statutory Instruments Scottish Draft Statutory Instruments Northern Ireland Draft Statutory RulesAll Impact Assessments UK Impact AssessmentsSearchAdvanced SearchFinance Act 2011You are here:2011 c. 11SCHEDULE 3Table of ContentsContentMore ResourcesPrevious: ScheduleNext: SchedulePlain ViewPrint Options
Changes to legislation:There are outstanding changes not yet made by the legislation.gov.uk editorial team to Finance Act 2011. Any changes that have already been made by the team appear in the content and are referenced with annotations.Changes to LegislationRevised legislation carried on this site may not be fully up to date. Changes and effects are recorded by our editorial team in lists which can be found in the ‘Changes to Legislation’ area. Where those effects have yet to be applied to the text of the legislation by the editorial team they are also listed alongside the legislation in the affected provisions. Use the ‘more’ link to open the changes and effects relevant to the provision you are viewing.Changes and effects yet to be applied to :Changes and effectsThis section lists the changes and effects yet to be applied to the specific provision you are viewing.Sch. 3 para. 27 modified by S.I. 2012/700 Sch. para. 8Sch. 3 para. 27 modified by S.I. 2012/700 Sch. para. 9 Section 27SCHEDULE 3E+W+S+N.I.Tainted charity donations Part 1 E+W+S+N.I.Income tax1In Part 13 of ITA 2007 (tax avoidance), after Chapter 7 insert—E+W+S+N.I.“CHAPTER 8E+W+S+N.I.Tainted charity donationsIntroductionE+W+S+N.I.809ZHOverview of Chapter(1)This Chapter makes provision for removing entitlement to income tax reliefs, and counteracting income tax advantages, where a person makes a relievable charity donation which is a tainted donation.
809ZIRelievable charity donations(1)In this Chapter “relievable charity donation” means a gift or other disposal which—
Tainted donationsE+W+S+N.I.809ZJTainted donations(1)For the purposes of this Chapter, a relievable charity donation is a tainted donation if (and only if) Conditions A, B and C are met.
(a)is wholly owned by one or more charities, at least one of which is the charity to which the donation is made or a connected charity, and
(b)has not previously been under the control of, and does not carry on a trade or business previously carried on by, one or more of the following—
(b)(i)a potentially advantaged person;
(ii)a person (other than a charity) who, at any time within the period of 4 years ending with the day on which paragraph (a) was first satisfied, was connected with a person who is a potentially advantaged person;
(b)entered on a register maintained under section 1 of the Housing Act 1996, section 20 of the Housing (Scotland) Act 2010 (asp 17) or Article 14 of the Housing (Northern Ireland) Order 1992 (S.I. 1992/1725 (N.I. 15)).
809ZKCircumstances in which financial advantage deemed to be obtained(1)This section applies for the purposes of Condition B.
(a)the sale or letting of property,
(b)the provision of services,
(c)the exchange of property,
(d)the provision of a loan or any other form of financial assistance, and
(e)investment in a business.
809ZLCertain financial advantages to be ignored(1)When determining whether a relievable charity donation is a tainted donation, a financial advantage within subsection (2), (3), (4) or (5) is to be ignored.
Removal of reliefs and imposition of charge to taxE+W+S+N.I.809ZMRemoval of income tax relief in respect of tainted donations etc(1)This section applies where a tainted donation is made by a person.
(a)in accordance with the relevant arrangements, and
(b)by a person, other than—
(b)(i)a qualifying charity-owned company in 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;
(a)section 63(2)(a), (aa) or (ab) of CAA 2001 (gifts of plant and machinery), so far as it applies in relation to income tax,
(b)Part 12 of ITEPA 2003 (payroll giving),
(c)section 108 of ITTOIA 2005 (gifts of trading stock),
(d)Chapter 2 of Part 8 of this Act (gift aid), or
(e)Chapter 3 of that Part (gifts of shares etc);
809ZNIncome tax charge where gift aid is withdrawn(1)Income tax is charged under this section if—
809ZOIncome tax charge where payment of trust income to charity(1)Income tax is charged under this section if—
SupplementaryE+W+S+N.I.809ZPConnected charitiesFor the purposes of this Chapter, a “connected charity” in relation to another charity means a charity which is connected with that other charity in a matter relating to the structure, administration or control of either charity.
809ZQConnected persons(1)Section 993 (meaning of “connected” persons) applies for the purposes of this Chapter—
809ZRMinor definitions(1)In this Chapter—
Part 2 E+W+S+N.I.Corporation tax2After Part 21B of CTA 2010 (inserted by Schedule 5 to this Act) insert—E+W+S+N.I. “Part 21C E+W+S+N.I.Tainted charity donationsIntroductionE+W+S+N.I.939AOverview of Part(1)This Part makes provision for removing entitlement to corporation tax reliefs where a person makes a relievable charity donation which is a tainted donation.
939BRelievable charity donations(1)In this Chapter “relievable charity donation” means a gift or other disposal which—
Tainted donationsE+W+S+N.I.939CTainted donations(1)For the purposes of this Part, a relievable charity donation is a tainted donation if (and only if) Conditions A, B and C are met.
939DCircumstances in which financial advantage deemed to be obtained(1)This section applies for the purposes of Condition B.
939ECertain financial advantages to be ignored(1)When determining whether a relievable charity donation is a tainted donation, a financial advantage within subsection (2), (3), (4) or (5) is to be ignored.
Removal of reliefsE+W+S+N.I.939FRemoval of corporation tax relief in respect of tainted donations etc(1)This section applies where a tainted donation is made by a company.
(ii)a relevant housing provider linked (within the meaning of section 939C(7)) with the charity to which that donation is made;
(a)section 63(2)(a), (aa) or (ab) of CAA 2001 (gifts of plant and machinery), so far as it applies in relation to corporation tax,
(b)section 105 of CTA 2009 (gifts of trading stock), or
(c)Part 6 of CTA 2010 (charitable donations relief);
SupplementaryE+W+S+N.I.939GConnected charitiesFor the purposes of this Part, a “connected charity” in relation to another charity means a charity which is connected with that other charity in a matter relating to the structure, administration or control of either charity.
939HConnected persons(1)Section 1122 (meaning of “connected” persons) applies for the purposes of this Part (except section 939G), but subject to the following modification.
939IMinor definitions(1)In this Part—
Part 3 E+W+S+N.I.Capital gains tax3After section 257 of TCGA 1992 insert—E+W+S+N.I.“257ATainted charity donations(1)Section 257 does not apply in relation to—
Part 4 E+W+S+N.I.Consequential amendmentsCapital Allowances Act 2001E+W+S+N.I.4In section 63 of CAA 2001 (cases in which disposal value is nil), in subsection (4)—E+W+S+N.I.(a)after “Subsection (2)” insert “— (b)at the end insert “, and (b)is subject to section 809ZM of ITA 2007 and section 939F of CTA 2010 (removal of tax relief in respect of tainted charity donations etc).”
Income Tax (Employment and Pensions) Act 2003E+W+S+N.I.5In section 713 of ITEPA 2003 (donations to charity: payroll deduction scheme), after subsection (5) insert—E+W+S+N.I.“(6)This section is subject to section 809ZM of ITA 2007 (removal of income tax relief in respect of tainted charity donations etc).”
Income Tax (Trading and Other Income) Act 2005E+W+S+N.I.6In section 108 of ITTOIA 2005 (gifts of trading stock to charities etc), in subsection (5)—E+W+S+N.I.(a)after “This section” insert “— (b)at the end insert “, and (b)is subject to section 809ZM of ITA 2007 (removal of income tax relief in respect of tainted charity donations etc).”
Income Tax Act 2007E+W+S+N.I.7ITA 2007 is amended as follows.E+W+S+N.I.8In section 30 (calculation of income tax liability: additional tax)—E+W+S+N.I.(a)in subsection (1) before the entry for section 205 of FA 2004 insert—“section 809ZN (tainted gift aid donations: charge to tax),
(b)for subsection (2) substitute—“(2)If the taxpayer is a trustee, the provisions referred to at Step 7 of the calculation in section 23 are—
9In section 58 (meaning of “adjusted net income), at the end insert—E+W+S+N.I.“(4)Subsection (6) of section 809ZM (removal of income tax relief in respect of tainted donations etc) excludes certain donations from being deducted at step 2 in subsection (1).”
10In section 413 (gift aid: overview of Chapter), after subsection (4) insert—E+W+S+N.I.“(4A)This Chapter is subject to section 809ZM (removal of income tax relief in respect of tainted charity donations etc).”
11In section 431 (gifts of shares, securities and real property to charities etc), after subsection (6) insert—E+W+S+N.I.“(7)This Chapter is subject to section 809ZM (removal of income tax relief in respect of tainted charity donations etc).”
12In section 543 (meaning of “non-charitable expenditure”), omit subsection (1)(g) and (h).E+W+S+N.I.13Sections 549 to 557 (substantial donor transactions) are repealed.E+W+S+N.I.14In Schedule 2 (transitionals and savings), omit paragraphs 105 and 106.E+W+S+N.I.15In Schedule 4 (index of defined expressions), at the appropriate places insert—E+W+S+N.I.“arrangements (in Chapter 8 of Part 13)section 809ZR”“charity (in Chapter 8 of Part 13)paragraph 1 of Schedule 6 to FA 2010 (and see also section 809ZR)”“the donor (in Chapter 8 of Part 13)section 809ZJ(3)”“potentially advantaged person (in Chapter 8 of Part 13)section 809ZJ(5)”“relievable charity donation (in Chapter 8 of Part 13)section 809ZI(1)”“tainted donation (in Chapter 8 of Part 13)section 809ZJ”.Housing and Regeneration Act 2008E+W+S+N.I.16In Schedule 9 (amendment of enactments: Part 1), omit paragraph 34.E+W+S+N.I.Corporation Tax Act 2009E+W+S+N.I.17In section 105 of CTA 2009 (gifts of trading stock to charities etc), in subsection (6) after “charity)” insert “ and section 939F of that Act (removal of corporation tax relief in respect of tainted charity donations etc) ”.E+W+S+N.I.18In Schedule 1 (minor and consequential amendments), omit paragraphs 703 and 704.E+W+S+N.I.Corporation Tax Act 2010E+W+S+N.I.19CTA 2010 is amended as follows.E+W+S+N.I.20In section 1 (overview of Act), in subsection (4)—E+W+S+N.I.(a)in the opening words for “21” substitute “ 21C ”, and(b)after paragraph (j) insert “, and (k)tainted donations made to charities (see Part 21C).”
21In section 189 (relief for qualifying charitable donations), in subsection (5) for “any” substitute “ section 939F and to any other ”.E+W+S+N.I.22In section 496 (meaning of “non-charitable expenditure”), omit subsection (1)(e) and (f).E+W+S+N.I.23Sections 502 to 510 (substantial donor transactions) are repealed.E+W+S+N.I.24In Schedule 1 (minor and consequential amendments), omit paragraphs 532 to 535.E+W+S+N.I.25In Schedule 2 (transitionals and savings etc), omit paragraphs 73 to 76.E+W+S+N.I.26In Schedule 4 (index of defined expressions), at the appropriate places insert—E+W+S+N.I.“arrangements (in Part 21C)section 939I”“charity (in Part 21C)paragraph 1 of Schedule 6 to FA 2010 (and see also section 939I)”“the donor (in Part 21C)section 939C(3)”“potentially advantaged person (in Part 21C)section 939C(5)”“relievable charity donation (in Part 21C)section 939B(1)”“tainted donation (in Part 21C)section 939C”. Part 5 E+W+S+N.I.Commencement and transitional provisionCommencementE+W+S+N.I.27(1)Subject to sub-paragraph (2), the amendments made by this Schedule have effect in relation to relievable charity donations made on or after 1 April 2011.E+W+S+N.I.(2)The repeals made by paragraphs 12 to 14, 16, 18 and 22 to 25 have effect in relation to any transaction, other than an excluded transaction, occurring on or after 1 April 2013.(3)A transaction is “excluded” if it is entered into in pursuance of a contract made before 1 April 2013, other than in pursuance of a variation of the contract made on or after that date.Treatment of existing arrangementsE+W+S+N.I.28In the amendments made by Parts 1 and 2 of this Schedule, references to arrangements include arrangements made, or made and implemented, before 1 April 2011.E+W+S+N.I.Treatment of substantial donor transactionsE+W+S+N.I.29(1)For the purposes of section 549(2) of ITA 2007 (meaning of substantial donor), relievable gifts (within the meaning of section 550 of that Act) received by a charitable trust on or after 1 April 2011 are to be disregarded.E+W+S+N.I.(2)Sub-paragraphs (3) and (4) apply where—(a)a substantial donor transaction is entered into before, or on or after 1 April 2011, and(b)that transaction is not tainted.(3)Where a payment made on or after 1 April 2011 by a charitable trust to a substantial donor in the course of, or for the purposes of, the substantial donor transaction would (in the absence of this sub-paragraph) be treated under section 551(1) or (5) of ITA 2007 as non-charitable expenditure, that payment is not to be so treated.(4)Where, as a result of the substantial donor transaction, non-charitable expenditure would (in the absence of this sub-paragraph) be treated as incurred under section 551(2) of that Act on or after 1 April 2011, that expenditure is not to be treated as so incurred.(5)A substantial donor transaction is “tainted” if (and only if) it is reasonable to assume from—(a)the likely effects of the relevant relievable gifts and the substantial donor transaction, and(b)the circumstances in which the relevant relievable gifts were made and the circumstances in which the substantial donor transaction was entered into,that the relevant relievable gifts (or one or more of them) would not have been made and the transaction would not have been entered into independently of one another.
(6)In this section—“relevant relievable gifts”, in relation to the substantial donor transaction, means the relievable gifts by reason of which a person is a substantial donor and the transaction is a substantial donor transaction;
30(1)For the purposes of section 502(2) of CTA 2010 (meaning of substantial donor), relievable gifts (within the meaning of section 503 of that Act) received by a charitable company on or after 1 April 2011 are to be disregarded.E+W+S+N.I.(2)Sub-paragraphs (3) and (4) apply where—(a)a substantial donor transaction is entered into before, or on or after, 1 April 2011, and(b)that transaction is not tainted.(3)Where a payment made on or after 1 April 2011 by a charitable company to a substantial donor in the course of, or for the purposes of, the substantial donor transaction would (in the absence of this sub-paragraph) be treated under section 504(1) or (5) of CTA 2010 as non-charitable expenditure, that payment is not to be so treated.(4)Where, as a result of the substantial donor transaction, non-charitable expenditure would (in the absence of this sub-paragraph) be treated as incurred under section 504(2) of that Act on or after 1 April 2011, that expenditure is not to be treated as so incurred.(5)The substantial donor transaction is “tainted” if (and only if) it is reasonable to assume from—(a)the likely effects of the relevant relievable gifts and the substantial donor transaction, and(b)the circumstances in which the relevant relievable gifts were made and the circumstances in which the substantial donor transaction was entered into,that the relevant relievable gifts (or one or more of them) would not have been made and the transaction would not have been entered into independently of one another.
Housing (Scotland) Act 2010 (asp 17) E+W+S+N.I.31Until such time as section 20 of the Housing (Scotland) Act 2010 is brought into force, the references to that section in the following provisions are to be read as references to section 57 of the Housing (Scotland) Act 2001 (asp 10)—E+W+S+N.I.(a)the definition of “relevant housing provider” in section 809ZJ(8) of ITA 2007;(b)the definition of “relevant housing provider” in section 939C(8) of CTA 2010.Previous: ScheduleNext: ScheduleBack to topOptions/HelpPrint OptionsPrint The Whole ActPDF The Whole ActWeb page The Whole ActPrint This Schedule onlyPDF This Schedule onlyWeb page This Schedule onlyYou have chosen to open The Whole ActThe Whole Act you have selected contains over 200 provisions and might take some time to download. You may also experience some issues with your browser, such as an alert box that a script is taking a long time to run.Would you like to continue?Continue to openYou have chosen to open The Whole Act as a PDFThe Whole Act you have selected contains over 200 provisions and might take some time to download.Would you like to continue?Continue to openYou have chosen to open the Whole ActThe Whole Act you have selected contains over 200 provisions and might take some time to download. You may also experience some issues with your browser, such as an alert box that a script is taking a long time to run.Would you like to continue?Continue to openYou have chosen to open Schedules only The Schedules only you have selected contains over 200 provisions and might take some time to download. You may also experience some issues with your browser, such as an alert box that a script is taking a long time to run.Would you like to continue?Continue to openLegislation is available in different versions:Latest Available (revised):The latest available updated version of the legislation incorporating changes made by subsequent legislation and applied by our editorial team. Changes we have not yet applied to the text, can be found in the ‘Changes to Legislation’ area.Original (As Enacted or Made):The original version of the legislation as it stood when it was enacted or made. No changes have been applied to the text.See additional information alongside the contentGeographical Extent: Indicates the geographical area that this provision applies to. For further information see ‘Frequently Asked Questions’.Show Timeline of Changes: See how this legislation has or could change over time. Turning this feature on will show extra navigation options to go to these specific points in time. Return to the latest available version by using the controls above in the What Version box.Opening OptionsDifferent options to open legislation in order to view more content on screen at onceMore ResourcesAccess essential accompanying documents and information for this legislation item from this tab. Dependent on the legislation item being viewed this may include:the original print PDF of the as enacted version that was used for the print copylists of changes made by and/or affecting this legislation itemconfers power and blanket amendment detailsall formats of all associated documentscorrection slipslinks to related legislation and further information resourcesMore ResourcesUse this menu to access essential accompanying documents and information for this legislation item. Dependent on the legislation item being viewed this may include:the original print PDF of the as enacted version that was used for the print copycorrection slipsClick 'View More' or select 'More Resources' tab for additional information including:lists of changes made by and/or affecting this legislation itemconfers power and blanket amendment detailsall formats of all associated documentslinks to related legislation and further information resources© Crown copyrightYou may use and re-use the information featured on this website (not including logos) free of charge in any format or medium, under the terms of the Open Government Licence