Charity Tax Update

Overview

Charity matters have been in the news lately as a result of both:

• the conclusion of consultations begun under the previous Government:

• the submission (13 October 2010) to the Economic Secretary to the Treasury of the report from the Gift Aid Forum and her response (dated 3 December 2010)
• report and response available to view at www.hm-treasury.gov.uk/8519.htm ;
• the publication (see www.hm-reasury.gov.uk/d/tainted_charity_donations.pdf ) of draft legislation (to be enacted in Finance Act 2011) reforming the much criticised substantial donor rules to:
• • target the legislation such that it only bites where there is a tax avoidance purpose (the current rules being too widely drafted such that innocent transactions can be caught); and