Top-up payments

2Meaning of “eligible charity”

1

A charity is an eligible charity for a tax year F1if it is not an excluded charity for that tax year (see subsection (3)).

F22

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

3

A charity on which a penalty has been imposed in connection with a gift aid exemption claim or top-up claim made by the charity is F3an excluded charity

a

for the tax year in which the claim was made, F4and

b

for the next tax year,

(even if the penalty was imposed after the tax year in which the claim was made).

4

For the purposes of this section—

F5a

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

b

penalty” means a penalty under—

i

Schedule 24 to the Finance Act 2007, or

ii

regulations under section 11;

c

a penalty is not to be regarded as having been imposed if all of the penalty is suspended (or the decision that a penalty is payable is cancelled on appeal); but this does not apply to a suspended penalty that subsequently becomes payable.