Clause 21 - Business gifts
Finance Bill
10:00 am
Mr Norman Lamb (North Norfolk, Liberal Democrat)
We have received the same representations from the Charities' Tax Reform Group, and we share the concerns outlined by the hon. Member for Eddisbury. It seems that a simple solution to the problem would be for the Economic Secretary to confirm that it is not the intention of the clause adversely to affect charities in the tax treatment of literature such as newsletters that they distribute to members.
Perhaps the Economic Secretary would also advise charities how they can make it clear through their own literature that people will receive the newsletter in return for donation to the charity so that the matter is given consideration. As I understand the briefing, that would take it outside the definition of a business gift. The matter could be simply clarified by the Economic Secretary making it clear that charities will not be adversely affected and the status quo will continue.
My other quick point, which was also referred to by the hon. Member for Eddisbury, is that I would be grateful if the Economic Secretary would deal with the concern that the effect of the clause could be that businesses will have to keep rolling 12-month records, which will increase the regulatory burden on them and reduce the beneficial impact of the clause.