With this it will be convenient to discuss the following:
New clause 2—Post-legislative review—
‘The Government shall, within 24 months of this Act coming into force, undertake a review of the operation and administration of the Gift Aid Small Donations Scheme and lay a report of the review before the House of Commons.’.
New clause 3—Complementary gift aid for small donations to small charities—
‘(1) Smaller charities, community amateur sports clubs or recently established charities, which do not meet the eligibility criteria in section (1) shall be eligible to apply to HM Revenue and Customs for complementary gift aid for small donations.
(2) “Small donations” for the purposes of complementary gift aid shall be as provided for in section 3 and the Schedule.
(3) That maximum donations limit for complementary gift aid shall be £5,000.
(4) The “connected charities” conditions in sections 4 and 5 shall also apply for charities making claims for complementary gift aid for small donations.
(5)
(a) HM Revenue and Customs may stipulate the supporting verification it may require from relevant agencies or authorities or designated persons in respect of any claims for complementary gift aid for small donations to small charities;
(b) such agencies, authorities or designated persons may include charity commissions, local government officers, police or police and crime commissioners, members of relevant professional bodies or others designated by devolved administrations in agreement with HM Revenue and Customs for these purposes.
(6) This section shall come into force on 6 April 2014.’.
This would provide for a separate scheme of supporting payments from HM Revenue and Customs, in the spirit of gift aid, to smaller or newer charities including those formed in response to a particular event.
Amendment 9, in clause 1, page 2, line 7, leave out subsection (6) and insert—
‘(6) The “specified amount” for a charity for a tax year is (subject to section 2(1))—
(a) £5,000 for a charity eligible for the full specified amount; or
(b) £2,000 for a charity eligible for the reduced specified amount.’.
This amendment is consequential on amendment 8.
Amendment 8, in clause 2, page 2, line 11, leave out subsection (1) and insert—
‘(1) A charity is an eligible charity for a tax year if—
(a) it has made a successful gift aid exemption claim in at least three of the previous seven years. In such cases, a charity will be eligible for the full specified amount; or
(b) it has made successful gift aid exemption claim in the previous year. In such cases, a charity will be eligible for the reduced specified amount.
This amendment introduces a probationary period for charities that do not have the claims history required in subsection (1)(a) of this clause. It allows them to benefit from a reduced specified amount until a claims history has been established. This also removes the requirement for a start-up period.
Government amendment 24.
Amendment 32, page 2, line 14, at end insert ‘or
(c) the charity is a “small charity”;
(d) the charity has been established for a specific event or project which has concluded.’.
This amendment extends the meaning of eligible charity to small charities and those established for specific events or projects.
Government amendments 25 and 26.
Amendment 10, page 2, line 26, leave out paragraph (a).
This amendment is consequential on amendment 8.
Government amendment 27.
Amendment 11, in clause 4, page 3, line 9, leave out paragraph (b) and insert—
‘(b) are eligible for the same rate of specified amount (subject to section 2(1)) for the tax year.’.
This amendment is consequential on amendment 8.
Amendment 12, page 3, line 15, leave out paragraph (a) and insert—
‘(a) the specified amount (subject to section 2(1)), divided by’.
This amendment is consequential on amendment 8.
Amendment 13, in clause 6, page 4, line 41, leave out paragraph (b) and insert—
‘(b) if less, the specified amount (subject to section 2(1))’.
This amendment is consequential on amendment 8.
Amendment 14, page 4, line 45, leave out paragraph (b) and insert—
‘(b) if less, the specified amount (subject to section 2(1))’.
This amendment is consequential on amendment 8.
Government amendments 28 and 29.
Amendment 15, in clause 9, page 6, line 20, leave out paragraph (a) and insert—
‘(a) two or more charities (“connected eligible charities”) are connected with one another in a tax year and are charities eligible for the same rate of the specified amount (subject to section 2(1)) for the tax year, and’.
This amendment is consequential on amendment 8.
Amendment 16, page 6, line 37, leave out paragraph (b) and insert—
‘(b) if less, the specified amount (subject to section 2(1))’.
This amendment is consequential on amendment 8.
Amendment 21, page 7, line 10, at end add—
‘(8) The Treasury must, within 24 months of this Act coming into force, prepare a report assessing the impact of—
(a) the connected charities provisions; and
(b) the community buildings provisions
on the ability of charities to benefit from the Gift Aid Small Donations Scheme and lay it before the House of Commons.’.
Government amendment 31.
Amendment 33, in clause 18, page 12, line 20, at end insert—
‘“small charity” means a charity whose gross income for a tax year is no more than £25,000.’.
This amendment defines a small charity as one whose gross income for a tax year is no more than £25,000. This figure is consistent with that given for lower-income charities in the Charities Act 2011 and the Office of the Scottish Charity Regulator’s Routine Monitoring Policy.