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

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 enactments(1). 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.

(1)

The enactments are those relating to income tax, capital gains tax, corporation tax, inheritance tax, stamp duty, stamp duty land tax and stamp duty reserve tax.