Explanatory Notes

Finance Act 2010

2010 CHAPTER 13

8 April 2010

Introduction

Section 32 Schedule 8: Miscellaneous Amendments

Details of the Schedule

Gift Aid: disqualifying overseas gifts

16.Paragraph 3 amends the rules that apply to donations made by non-UK resident donors under Gift Aid where the donor has not been charged with sufficient UK tax to cover the repayment of tax to the charity.

17.Sub-paragraph (1) provides for Chapter 2 of Part 8 of ITA (gift aid) to be amended,

18.Sub-paragraph (2)(a) substitutes “F” for “G” in section 416(1)(a) of ITA, reducing by one the number of conditions that are to apply to a donation before it qualifies for Gift Aid.

19.Sub-paragraph (2)(b) repeals section 416(8) of ITA which was previously condition “G” and required that a gift was not to be a disqualified overseas gift.

20.Sub-paragraph (3) repeals section 422 of ITA (disqualified overseas gifts).

21.Sub-paragraph (4) substitutes “F” for “G” in section 429(3) of ITA (giving through self-assessment return). Section 429 allows an individual who donates a tax repayment to charity to direct that Gift Aid should apply to the donation. In order for Gift Aid to apply, the donation must be a “qualifying donation” (under section 416 of ITA) and therefore reference to the now redundant condition “G” must be removed.