Extension of charity definition
The Finance Act 2010 is to extend the definition of a charity to include all UK charity tax reliefs and exemptions administered by HMRC, where previously only those claiming gift aid had been included in the definition.
This means that those charities which did not claim gift aid, but did receive other HMRC charitable reliefs and exemptions will now need to comply with the fit and proper persons test, which applies to all trustees and managers of a charity. The majority of charities however should already have procedures in place which meet this test, but it is important to note that some may not.
In addition, charities seeking to make a repayment claim to HMRC may now have to complete form ChA1 before the claim can be processed. Charities claiming other reliefs (i.e. non-repayment reliefs) do not need to fill out the form before claiming an exemption, although may still be asked to do so to ensure they meet the criteria for relief.
Date: 2nd May, 2012
Articles from this Author
9th February, 2018
Guidance for charities regarding the changes to the automatic disqualification of trustees rules
30th November, 2017
Legislative changes affecting the Charitable Incorporated Organisation (CIO)
14th November, 2017
Updated guidance for independent examiners (CC32)
13th November, 2017
Charity Commission Annual Report 2016/2017
19 TAG Alliances Member Firms will be gathering in the Isle of Man this weekend for the 2018 UK and Ireland Regiona… twitter.com/i/web/status/1…
For the latest Mercer & Hole news, visit our LinkedIn page mercer-&-hole