The Finance Act 2010, Schedule 6, Part 1 (Further Consequential and Incidental Provision etc) Order 2012
The provision made by this Order appears appropriate in consequence of, or otherwise in connection with, Part 1 of that Schedule.
Citation, commencement and effect
1.
This Order may be cited as the Finance Act 2010, Schedule 6, Part 1 (Further Consequential and Incidental Provision etc) Order 2012 and comes into force on 1st April 2012.
2.
(1)
Article 5 has effect in relation to—
(a)
a supply of goods or services (including anything treated as such a supply) made on or after 1st April 2012,
(b)
an acquisition of goods from another member State on or after 1st April 2012, and
(c)
an importation of goods from a place outside the member States on or after 1st April 2012.
(2)
In paragraph (1)—
“importation of goods from a place outside the member States” shall be construed in accordance with section 15 of VATA 1994;
“supply” shall be construed in accordance with section 5 of VATA 1994.
3.
Article 6 has effect—
(a)
(b)
4.
Article 7 has effect—
(a)
for corporation tax purposes, for accounting periods beginning on or after 1st April 2012, and
(b)
Definition of “charity” for the purposes of value added tax
5.
(1)
(2)
Accordingly, by virtue of paragraph 33(2) of Schedule 6 to the Finance Act 2010, the definition of “charity” in Part 1 of that Schedule applies for the purposes of those enactments.
Definition of “charity” for the purposes of capital gains tax
6.
(1)
The definition of “charity” in section 1(1) of the Charities Act 2011 ceases to apply for the purposes of the enactments relating to capital gains tax to which it would otherwise apply.
(2)
Accordingly, by virtue of paragraph 33(2) of Schedule 6 to the Finance Act 2010, the definition of “charity” in Part 1 of that Schedule applies for the purposes of those enactments.
Amendment of CTA 2009
7.
This Order comes into force on 1st April 2012 and makes further consequential and incidental provision in consequence of, or in connection with, Part 1 of Schedule 6 to the Finance Act 2010 (c. 13) (“Schedule 6”).
Part 1 of Schedule 6 introduces a new definition of “charity” for the purposes of the taxes listed in paragraph 7 of that Schedule (it also introduces new definitions of “charitable trust” and “charitable company” for the purposes of those taxes). A body of persons or trust that is established in the UK, another EU member State or a territory specified in regulations made by the Commissioners for Her Majesty’s Revenue and Customs falls within the new definitions if it is established for charitable purposes within the meaning of section 2 of the Charities Act 2011 (c. 25) and the other conditions described in paragraph 1 of Schedule 6 are fulfilled.
Article 5 and 6 of this Order apply the new definition of “charity” for the purposes of the enactments relating to value added tax and capital gains tax to which the definition in the Charities Act 2011 applied before the coming into force of this Order.
The new definition of “charity” has already been applied for the purposes of Chapter 2 of Part 8 of the Income Tax Act 2007 (gift aid) (see paragraph 34 of Schedule 6). See also the Finance Act 2010, Schedule 6, Part 2 (Commencement) Order 2012 No.736 (c.18) which applies the new definitions for the purposes of the other taxes listed in paragraph 7 of Schedule 6. It also applies the new definitions of “charitable trust” and “charitable company” for the purposes of the Taxation of Capital Gains Act 1992 (c.12).
Article 7 amends the entry for “charity” in Schedule 4 to the Corporation Tax Act 2009 (c. 4) (index of defined expressions) to refer to paragraph 1 of Schedule 6 with effect from the times specified in article 4.
A Tax Information and Impact Note has not been prepared for this instrument as it gives effect to previously announced policy. A full Impact Assessment of the effect a new definition of charity will have on the costs of business and the voluntary sector was published by HMRC on 24th March 2010 and is available on the HMRC website at http://www.hmrc.gov.uk/budget2010/march/ext-char-tax-rel-ia-3755.pdfm. It remains an accurate summary of the impacts that apply to this instrument.