Clause 2 — Meaning of “eligible charity”

Small Charitable Donations Bill – in the House of Commons at 8:00 pm on 26 November 2012.

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Amendments made: 24, page 2, line 12, leave out ‘3 of the previous 7’ and insert ‘2 of the previous 4’.

This amendment, and amendments 25 to 27, change the criteria for determining a charity’s eligibility for the small donations scheme. Under this amendment, the charity must have made successful gift aid claims in 2 out of the previous 4 tax years, rather than 3 out of the previous 7.

Amendment 25, page 2, line 16, leave out ‘3’ and insert ‘2’.

Under clause 2(2), earlier gift aid claims are ignored for the purpose of the eligibility rules where a charity doesn’t claim for 3 consecutive tax years. This amendment reduces that period to 2 consecutive tax years.

Amendment 26, page 2, line 22, leave out ‘2 tax years’ and insert ‘tax year’.

This amendment reduces the period for which a charity is not eligible where a penalty is imposed on the charity. Under the amendment, the period will be the tax year the claim was made and the next tax year (rather than that year and the next 2 tax years).

Amendment 27, page 2, line 26, leave out ‘3’ and insert ‘2’.—(Sajid Javid.)

This amendment reduces the “start-up period” for a charity to the first period of 2 (rather than 3) consecutive tax years during which it is at all times a charity.