www.whitehead-monckton.co.uk ©whitehead monckton 2012 legislation & case law update gail hall...
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www.whitehead-monckton.co.uk ©Whitehead Monckton 2012
Legislation & Case Law Update
Gail HallOctober 2012
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Finance Bill 2012
• Income tax: cap on relief if more than £50,000 or 25% of income lifted after protest. (31.5.2012)
• Inheritance tax: reduced rate if 10% of net estate going to charity; (post 6.4.2012 deaths)
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Gift Aid Small Donations Scheme (GASDS)
• Gift aid style repayment (capped at £5,000pa) on small donations without GA declarations from donors. 2011.
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GASDS cont.
• Max donation increased from £10 to £20 in 2012 Budget;
• Bill in 2013; • Complex – HMRC registered for GA;
submitted GA claim in 3 out of 7 years with no more than 2 year gap; limit on claims with GA claims.
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VAT – ouch!
• Removal of zero rating of approved alterations to listed buildings; transitional arrangements to protect contracts pre 21.3.2012.
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Cultural Gifts Scheme
• Reduction of income tax & CGT for making gifts of pre-eminent objects/works of art to the nation.
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More VAT – EU cost sharing exemption
• For certain services supplied within CSGs where the members carry out exempt or non business activities;
• Help to charities, education providers, social housing providers, health & welfare organisations.
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Helena Partnerships
• Not able to claim £6m corporation tax relief on rents as purposes NOT exclusively charitable.
• Court of Appeal dismissed appeal; operations NOT for primary benefit of the community.
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Young and another v HM AG[2011] EWHC 3782 (Ch)
• Pension issue. Collection has to be sold to plug pension hole.
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Berry & Anthr v IBS-STL (UK)
• Gift of residuary estate to 6 named charities; 1 charity’s assets transferred to corporate successor charity which then went into insolvent liquidation.
• Will seen as giving execs unfettered discretion to distribute share of estate
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Phillips v RSPB [2012] EXHC 618 618 (Ch)
• Gift in will to named charitable company effective at date of testatrix’s death.
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Aliss & another v CC and others
• CC scheme to merge 2 independent schools: controversial; cy pres applied.
• Disgruntled parents appealed against the scheme;
• Tribunal held that the scheme created unnecessary risk re the
charitable property.
Mergers can be unpicked…
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Uturn UK CIC v CC
• All of an organisation’s purposes MUST be EXCLUSIVELY charitable for it to be a charity.
• 1 of the objects was to advance citizenship
& community development
via street associations.
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Wirral Independent Recycling Enterprise Ltd V HMRC
• Not for profit furniture recycling business was not established for exclusively charitable purposes so not entitled to claim VAT zero-rating on sale of donated goods.
• Get registered with the CC if you want to embark on significant taxable activities.
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Contact
• Gail Hall
01622 698045