This means that
those Community Benefit Societies registered under the Industrial and
Provident Societies Acts 1965 to 2003 which meet the criteria for
charities will, once the Bill is in effect, like other charities, be
able to claim a limited amount of tax rebate on cash donations if
they already operate the Gift Aid Scheme
for tax benefits and
meet other conditions.
Minister's assurance could help if the inclusion of I & P's were seen as uncertain after the Bill is
law - Pepper v Hart
In addition, the
Minister agreed, at Gareth's request, to write to the Charity
Commission to ask them to speed up their decision about who should
regulate charitable I & P's.
Hansard section on Clause 17 from column 317. here is the Minister's clarification:
understand the intention behind amendment 34, but I ask the hon.
Member for Harrow West to withdraw it, because it is not necessary.
Clause 17 sets out definitions for several of the terms used in the
Bill. Subsection (1) defines what is meant by a charity which, for
the purposes of the Bill, includes a charity eligible for UK charity
tax reliefs, and certain organisations that are not charities in law,
but that benefit from gift aid. Those are community amateur sports
clubs, as well as certain named organisations.
34 would add a further type of organisation to the definition of a
charity: industrial and provident societies that operate as
charities. Industrial and provident societies are regulated by the
Financial Services Authority, rather than the Charity Commission, but
some of them are charities, as the hon. Gentleman said. Industrial
and provident societies that are charities are entitled to claim UK
charity tax reliefs, including gift aid, because they meet the
definition of a charity as set out in subsection (1)(a). It follows
that there is no need to specify that industrial and provident
societies are a separate class of organisation to which the Bill will
apply. When an industrial and provident society is not currently a
charity, it is not eligible for the scheme. Those societies that are
charities automatically qualify for the scheme, subject to their
meeting the eligibility conditions.
Forgive me, dear reader, for also quoting this extract:
Thomas: The Minister
has been helpful and given clarity to bencom societies that are
charities, saying that they are covered under the Bill if they
fulfill all the criteria that we have debated at some length. That
will provide huge reassurance to those legal experts who advise
industrial and provident societies, such as Mr Snaith, who is a
distinguished former university lecturer and expert on the co-op and
© Ian Snaith 2012 This work is licensed under the Creative Commons Attribution-NonCommercial-Noderivs 2.0 England and Wales Licence. To view a copy of this licence visit http://creativecommons.org/licenses/by-nc-nd/2.0/uk/ or send a letter to Creative Commons, 559 Nathan Abbott Way, Stanford, California 94305, USA
Labels: bencoms, charities, Co-operative Party, Gareth Thomas MP, gift aid, Ian Snaith, industrial and provident societies, small charitable donations bill, tax and charities