Clause 51 - Relief for gift aid and other income of charities etc

Part of Finance Bill – in a Public Bill Committee at 3:30 pm on 14 June 2012.

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Photo of Catherine McKinnell Catherine McKinnell Shadow Minister (Education) 3:30, 14 June 2012

To avoid the risk of pre-empting what the Minister will say, I will not go into any detail as to what the clause and schedule will do. I will make my comments in advance of our receiving that explanation  from the Minister. However, part of the clause’s purpose is to rectify an error in the Finance Act 2010 that occurred in a rewriting of the Corporation Tax Act 2010, which led to community amateur sports clubs not being treated in the same way as charitable companies for the purposes of gift aid legislation. The purpose of the clause and the schedule is to rectify that mistake. In this year of the Olympics, it is right and proper that community amateur sports clubs are given the same rights to tax relief and support as other charities.

Following on from comments made by my hon. Friend the Member for Leeds West, the issue raises general concerns about the Government’s treatment of charities and their lack of consultation regarding some of the provisions that would have had a devastating impact on charitable donations. Given that the Government have proclaimed their great belief in the somewhat vague concept of the big society, there is grave concern about any obstacles put in the way of charitable giving and its tax treatment. Therefore, we welcome the changes in the clause to rectify those anomalies. We trust that the Government will consult properly in the future on any taxation changes that would impact charitable giving in this country.