Finance Act 2012

Community amateur sports clubs: gift aid and other income U.K.

5 U.K. Chapter 9 of Part 13 of CTA 2010 (special types of company etc: community amateur sports clubs) is amended as follows.

6 U.K. After section 661C insert—

“Gifts qualifying for gift aid relief U.K.

661D Tax treatment of gifts qualifying for gift aid relief

(1) This section applies if a gift is made to a registered club by an individual and the gift is a qualifying donation for the purposes of Chapter 2 of Part 8 of ITA 2007 (gift aid).

(2) The club is treated as receiving, under deduction of income tax at the basic rate for the tax year in which the gift is made, a gift of an amount equal to the grossed up amount of the gift.

(3) The income tax treated as deducted is treated as income tax paid by the club.

(4) The grossed up amount of the gift is treated as an amount in respect of which the club is chargeable to corporation tax, under the charge to corporation tax on income.

But this is subject to section 664 (exemption for interest and gift aid income).

(5) References in this section to the grossed up amount of the gift are to the amount of the gift grossed up by reference to the basic rate for the tax year in which the gift is made.”

7 U.K. After section 665 insert—

“Claims U.K.

665A Claims in relation to interest and gift aid income

(1) This section applies to—

(a) claims for repayment of income tax treated as having been paid by virtue of section 661D (tax treatment of gifts qualifying for gift aid relief),

(b) claims for amounts to be exempt from tax by virtue of section 664 (exemption for interest and gift aid income), and

(c) claims for repayment of income tax deducted at source from interest income (within the meaning of that section) which is exempt from tax by virtue of that section.

(2) A claim to which this section applies may be made—

(a) to an officer of Revenue and Customs, or

(b) by being included in the claimant's company tax return.

(3) In this section—

• “free-standing claim” means a claim made as mentioned in subsection (2)(a), and

• “tax return claim” means a claim made as mentioned in subsection (2)(b).

(4) The Commissioners for Her Majesty's Revenue and Customs may by regulations make provision—

(a) limiting the number of free-standing claims that may be made by a person in a tax year, or

(b) requiring a claim for an amount below an amount specified in the regulations to be made as a tax return claim.

(5) The regulations may make different provision for different cases or purposes.”

8 U.K. In consequence of the provision made by paragraph 6, in section 413 of ITA 2007 (overview of gift aid relief), after subsection (5) insert—

“(6) For related reliefs for community amateur sports clubs see Chapter 9 of Part 13 of CTA 2010.”