We need your support to keep TheyWorkForYou running and make sure people across the UK can continue to hold their elected representatives to account.

Donate to our crowdfunder

Clause 49 - Gifts to the nation

Part of Finance Bill – in a Public Bill Committee at 3:15 pm on 14th June 2012.

Alert me about debates like this

Photo of Chloe Smith Chloe Smith The Economic Secretary to the Treasury 3:15 pm, 14th June 2012

Mr Amess, thank you for calling me to speak. I certainly will address the points that have just been made. The hon. Member for Newcastle upon Tyne North has cited concerns raised by the ICAEW and I would reject any allegation that these changes are fundamental or dangerous. They are minor and do not affect the fundamental principles behind the scheme, which is to promote philanthropy and encourage lifetime giving.

I make the point that—some may think it controversial —the consultation process has been invaluable in this case for getting the legislation right. At each stage we have endeavoured to respond to suggestions while retaining the core principle behind the scheme of a significant element of philanthropy. As hon. Members may know, the original consultation in June set out that objects with an estate duty charge would not be eligible under the scheme. On further analysis and in the light of the consultation responses, HMRC set out in the notes accompanying the draft Finance Bill that it would look to mirror loosely the inheritance tax conditional exemption charge, but that it was considering waiving the entire estate duty charge and that the donor would not receive a tax reduction.