2012 No. 736 (C. 18)
Charities
Income Tax
Capital Gains Tax
Corporation Tax
Inheritance Tax
Stamp Duty
Stamp Duty Land Tax
Stamp Duty Reserve Tax

The Finance Act 2010, Schedule 6, Part 2 (Commencement) Order 2012

Made
The Treasury make the following Order in exercise of the powers conferred by paragraph 34(1)(b),(2) and (3) of Schedule 6 to the Finance Act 20101:

Citation and interpretation

1.

(1)

This Order may be cited as the Finance Act 2010, Schedule 6, Part 2 (Commencement) Order 2012.

(2)

In this Order “Schedule 6” means Schedule 6 to the Finance Act 20102.

Provisions coming into force

2.

The repeals and other amendments made by Part 2 of Schedule 6 described in articles 3 to 22 of this Order come into force as follows.

Paragraph 8 of Schedule 6 (amendment of FA 1982)

3.

The amendment of section 129(1) of FA 19823 (stamp duty: exemption from duty on grants, transfers to charities etc) made by paragraph 8 of Schedule 6 comes into force in relation to any conveyance, transfer or lease made or agreed to be made on or after 1st April 2012.

Paragraph 9 of Schedule 6 (amendment of FA 1983)

4.

The amendment of section 46(3) of FA 19834 (Historic Buildings and Monuments Commission for England) made by paragraph 9 of Schedule 6 comes into force on 1st April 2012.

Paragraph 10 of Schedule 6 (amendment of IHTA 1984)

5.

(1)

The repeal of the definitions of “charity” and “charitable” in section 272 of IHTA 19845 (general interpretation) made by paragraph 10 of Schedule 6 comes into force in relation to a transfer of value made on or after 1st April 2012.

(2)

In this article “transfer of value” has the meaning given by section 3 of IHTA 19846.

Paragraph 11 of Schedule 6 (amendment of FA 1986)

6.

The amendment of section 90(7) of FA 19867 (stamp duty reserve tax: exceptions from principal charge) made by paragraph 11 of Schedule 6 comes into force in relation to any agreement to transfer securities made on or after 1st April 2012.

Paragraph 12 of Schedule 6 (amendment of FA 1989)

7.

The repeal of sub-paragraph (10) of paragraph 4 of Schedule 5 to FA 19898 (employee share ownership trusts) made by paragraph 12 of Schedule 6 comes into force in relation to trusts established on or after 6th April 2012.

Paragraph 13 of Schedule 6 (amendment of TCGA 1992)

8.

(1)

The amendment of section 222(8B)(b)(iii) of TCGA 19929 (relief on disposal of private residence) made by paragraph 13(1) and (2) of Schedule 6 comes into force in relation to living accommodation provided for a director on or after 6th April 2012 if that accommodation was not already provided for the director immediately before that date.

(2)

In this article “director” has the meaning given by section 222(8D) of TCGA 199210.

9.

(1)

The repeals mentioned in paragraph (2) come into force—

(a)

for corporation tax purposes, for accounting periods11 beginning on or after 1st April 2012, and

(b)

for capital gains tax purposes, for the tax year 2012-1312 and subsequent tax years.

(2)

The repeals referred to in paragraph (1) are—

(a)

the repeal of section 256(6) and (8) of TCGA 199213 (charities) made by paragraph 13(1) and (3) of Schedule 6,

(b)

the repeal of section 256C(6) of TCGA 199214 (attributing gains to the non-exempt amount: charitable companies) made by paragraph 13(1) and (4) of Schedule 6, and

(c)

the repeal of section 256D(7) of TCGA 199215 (how gains are attributed to the non-exempt amount: charitable companies) made by paragraph 13(1) and (5) of Schedule 6.

Paragraph 15 of Schedule 6 (amendment of FA 1999)

10.

The amendments of paragraph 6(3) of Schedule 19 to FA 199916 (exclusion of charge to stamp duty reserve tax in certain cases of change of ownership) made by paragraph 15(1) and (2) of Schedule 6 come into force in relation to surrenders (within the meaning given by paragraph 2(1) of Schedule 19 to FA 1999) occurring on or after 1st April 2012.

11.

The amendment of paragraph 15(c) of Schedule 19 to FA 1999 made by paragraph 15(1) and (3) of Schedule 6 comes into force on 1st April 2012.

Paragraph 16 of Schedule 6 (amendment of CAA 2001)

12.

The amendments of section 63(2)(a) and (aa) of CAA 200117 (cases in which disposal value is nil) made by paragraph 16 of Schedule 6 come into force—

(a)

for corporation tax purposes, for accounting periods beginning on or after 1st April 2012, and

(b)

for income tax purposes, for the tax year 2012-1318 and subsequent tax years.

Paragraph 17 of Schedule 6 (amendment of ITEPA 2003)

13.

The amendments of ITEPA 200319 made by paragraph 17 of Schedule 6 come into force for the tax year 2012-13 and subsequent tax years.

Paragraphs 18, 19 and 20 of Schedule 6 (amendment of FA 2003)

14.

(1)

The—

(a)

repeal of sub-paragraph (4) of paragraph 1 of Schedule 8 to FA 200320 (SDLT: charities relief), and

(b)

amendment of sub-paragraph (2) of paragraph 4 of Schedule 8 to FA 200321 (SDLT: charitable trusts)

made by paragraphs 18,19 and 20 of Schedule 6 come into force in relation to a land transaction of which the effective date is on or after 1st April 2012.

(2)

In this article “land transaction” has the meaning given by section 43 of FA 200322 and “effective date” has the meaning given by section 119 of that Act23.

Paragraph 21 of Schedule 6 (amendment of ITTOIA 2005)

15.

(1)

Subject to the following provisions of this article, the amendments of ITTOIA 200524 made by paragraph 21 of Schedule 6 come into force for the tax year 2012-13 and subsequent tax years.

(2)

The amendments mentioned in paragraph (3) come into force in relation to insurances and contracts made on or after 6th April 2012.

(3)

The amendments referred to in paragraph (2) are—

(a)

the amendment of section 545(1) of ITTOIA 2005 (definitions for Chapter 9 of Part 4) made by paragraph 21(1) and (3) of Schedule 6, and

(b)

the amendment of Part 2 of Schedule 4 to ITTOIA 2005 (index of defined expressions) made by paragraph 21(1) and (5)(a) of Schedule 6, so far as the amendment applies in relation to Chapter 9 of Part 4 of ITTOIA 2005.

Paragraph 22 of Schedule 6 (amendment of F (No.2)A 2005)

16.

The amendment of section 18(3)(b)(i) of F(No.2)A 200525 (authorised investment funds: specific powers) made by paragraph 22 of Schedule 6 comes into force on 1st April 2012.

Paragraph 23 of Schedule 6 (amendment of ITA 2007)

17.

The amendments of ITA 200726 made by paragraph 23(1) to (5) and (7) of Schedule 6 come into force for the tax year 2012-13 and subsequent tax years.

18.

The repeal of the definition of “charity” in section 989 of ITA 200727 made by paragraph 23(1) and (6) of Schedule 6, so far as it applies for purposes other than those of Chapter 2 of Part 8 of that Act, comes into force for the tax year 2012-13 and subsequent tax years.

Paragraph 24 of Schedule 6 (amendment of FA 2008)

19.

The repeal of the definition of “charity” in paragraph 60(2) of Schedule 36 to FA 200828 (references to carrying on a business) made by paragraph 24 of Schedule 6 comes into force on 1st April 2012.

Paragraph 26 of Schedule 6 (amendment of FA 2009)

20.

The repeal of the definition of “charity” in paragraph 8 of Schedule 49 to FA 200929 (general interpretation) made by paragraph 26 of Schedule 6 comes into force on 1st April 2012.

Paragraph 27 of Schedule 6 (amendment of CTA 2010)

21.

The amendments of CTA 201030 made by paragraph 27 of Schedule 6 come into force—

(a)

for corporation tax purposes, for accounting periods beginning on or after 1st April 2012, and

(b)

for income tax purposes, for the tax year 2012-13 and subsequent tax years.

Paragraph 28 of Schedule 6 (amendment of TIOPA 2010)

22.

The amendment of section 326(3) of TIOPA 201031 (charities) made by paragraph 28 of Schedule 6 comes into force for accounting periods beginning on or after 1st April 2012.
Michael Fabricant
James Duddridge
Two of the Lords Commissioners of Her Majesty’s Treasury
EXPLANATORY NOTE
(This note is not part of the Order)
This Order applies the new definitions of “charity”, “charitable company” and “charitable trust” set out in Part 1 of Schedule 6 to the Finance Act 2010 (c.13) for the purposes of certain tax enactments32. It does this by bringing into force amendments in Part 2 of Schedule 6 which remove existing definitions applying for the purposes of those enactments (see articles 3 to 22). On the coming into force of these amendments, the effect of paragraph 33(2) of Schedule 6 is that the new definitions will apply.

The new definition of charity has already been applied for the purposes of Chapter 2 of Part 8 of the Income Tax Act 2007(c. 3) (gift aid) (see paragraph 34 of Schedule 6 to the Finance Act 2010). See also the Finance Act 2010, Schedule 6, Part 1 (Further Consequential and Incidental Provision etc) Order 2012 No. 735 which applies the new definition of “charity” for the purposes of enactments relating to value added tax and of the Taxation of Chargeable Gains Act 1992 (c. 12).

A Tax Information and Impact Note has not been prepared for this instrument as it gives effect to previously announced policy and it is a commencement order. 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.