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UK Finance Act 2010, Schedule 6 (pg 93)

Discussion in 'Scientology Property Tax' started by RolandRB, Dec 21, 2010.

  1. RolandRB Member

    UK Finance Act 2010, Schedule 6 (pg 93)

    http://www.legislation.gov.uk/ukpga/2010/13/pdfs/ukpga_20100013_en.pdf

    There is a new definition of a "charity" in the UK that came into effect on 08 April 2010. I don't know what scope and applicability it has regarding charitable rates relief in the UK, though. Please have a read and give your opinion. I have pooned the three London authorities and Sunderland about this already to ask for clarification.

    Edit: I mean page 93, Schedule 6, section 30

    Edit: Maybe it does not apply as business rates is not on the list. But VAT is and we know the cult gets VAT relief in the UK.
  2. OTBT Member

    re: UK Finance Act 2010, Schedule 6 (pg 93)

    Roland, your directions don't seem to match the document. Schedule 6, section 30, says

    Page 93, Schedule 6, Section 30 says"

    The link is appreciated, but why don't you copy and paste the specific chunk of OCRed text here, so everyone is on the same "page".

    Cheers,
    OTBT
  3. RolandRB Member

    re: UK Finance Act 2010, Schedule 6 (pg 93)

    I sent this. Too late to report typos.
    ------------------------------------------------------------------
    Definition of "charity" as applied to Non Dom. Rates‏

    From: Roland Rashleigh-Berry (rolandberry@hotmail.com)
    Sent: 21 December 2010 17:09:04
    To: ndr@communities.gsi.gov.uk


    Dear Sir,

    In the Finance Act 2010 in Schedule 6 there appeared a fuller and more formal definition of "charity" than has appeared in any previous LGFA. Since local authorities collect NDR on behalf of the government then should they be using the FA 2010 definition of what a charity is, especially regards whether a charity be registered in the UK or a member State, for the granting of mandatory or discretionary rates relief or should they use the older definitions available? I am wondering whether foreign charities that are not registered as a charity in any country are entitled to rates relief since the anactment of the FA 2010.

    Roland
  4. TinyDancer Member

    re: UK Finance Act 2010, Schedule 6 (pg 93)

    Nice find, Roland.

    Part 2 is basically a list of statutes (enactments) in which terms such as "a body of persons established for charitable purposes only” are replaced by “a charitable company” or "a charitable trust" and those terms defined by reference to Part 1 of Schedule 6 of the FA 2010.
  5. RolandRB Member

    Re: UK Finance Act 2010, Schedule 6 (pg 93)

    It's a bit of a puzzle why it does not apply to business (commercial) rates (if that is the case) because a change in legislation regarding the location of the charity if in the EU is overdue for commercial rates local government finance legislation and in the FA 2010 they have also slipped in the "registration" thing as well. It does not seem right to have one definition covering income tax and many other taxes collected by central government and have a different definition for commercial rate collection which gets given to central government anyway.
  6. RolandRB Member

    Re: UK Finance Act 2010, Schedule 6 (pg 93)

    I have checked the annotations to the LGFA 1988 and they have not updated the definition of a charity in that Act. Again, it is odd to have two different definitions of charity for tax purposes.
  7. RolandRB Member

    Re: UK Finance Act 2010, Schedule 6 (pg 93)

    Though I am fairly sure that this change in definition does not affect local government, I was reading debate in Hansard about this which was quite interesting.

    Lords Hansard text for 26 Jan 201026 Jan 2010 (pt 0014)

    It seems there are moves to make all charities responsible to the Charity Commission (England and Wales) or at least to abide by their recommendations. Reading the above it seems they intend the Charity Commission to be responsible for every charity in England and Wales whether a charity wants to or not. But this may be my interpretation and there are no clear decisions in any case.

    I would say that a charity can choose not to be registered but only if they the follow the CC guidelines on whether they should be registered or not. There is nothing clear yet but I think that would make COSRECI effectively not a charity at all if it does not fall under the control of the CC.

    It is all unclear but an interesting read. Note that everybody in parliament seems to have a BUTTON ON CHARITIES and the good works that they do and about protecting public confidence in the charitable sector so.........

    ...... writing in to your MP (i.e. your own constituency MP) and moaning about how the granting of rates relief to Churches of Scientology has destroyed your confidence in any and every charity in the country could be majorly disturbing to the parliamentarians. So please do it. And please do it in numbers. Hard copies posted from your constituency and with a return address for the hard copy response.

    Maybe all it needs is for one hundred constituents to post in letters to their own constituency MPs about this and the cult in the UK will be destroyed.

    Edit: There is going to be a review of the Charities Act to be published in 2011 according to the below:
    http://www.publications.parliament.uk/pa/cm201011/cmhansrd/cm101028/text/101028w0001.htm

    So..... writing in to your MP might help shape the conclusions. I hope there is enough mix of people who read this forum to do this.

    Edit2:

    This is interesting. Search on "repeal":. It seems like the Treasury could extend this new definition of charities to local government any time it likes.

    http://www.legislation.gov.uk/ukpga/2010/13/schedule/6

    Commencement of Part 2

    34(1)The repeal of the definition of “charity” in section 989 of ITA 2007 made by paragraph 23(6) above has effect—.
    (a)so far as it applies for the purposes of Chapter 2 of Part 8 of that Act (gift aid), in relation to gifts made on or after 6 April 2010, and.
    (b)so far as it applies for other purposes, in accordance with such provision as the Treasury may make by order..
    (2)The other amendments made by Part 2 come into force in accordance with such provision as the Treasury may make by order..
    (3)An order under this paragraph may—.
    (a)make different provision for different purposes, and.
    (b)include transitional provision and savings..
    (4)An order under this paragraph is to be made by statutory instrument..

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