©Whitehead Monckton 2012 Legislation & Case Law Update Gail Hall October 2012

©Whitehead Monckton Finance Bill 2012 Income tax: cap on relief if more than £50,000 or 25% of income lifted after protest. ( ) Inheritance tax: reduced rate if 10% of net estate going to charity; (post deaths) 2

©Whitehead Monckton Gift Aid Small Donations Scheme (GASDS) Gift aid style repayment (capped at £5,000pa) on small donations without GA declarations from donors

©Whitehead Monckton 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. 4

©Whitehead Monckton VAT – ouch! Removal of zero rating of approved alterations to listed buildings; transitional arrangements to protect contracts pre

©Whitehead Monckton Cultural Gifts Scheme Reduction of income tax & CGT for making gifts of pre-eminent objects/works of art to the nation. 6

©Whitehead Monckton 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. 7

©Whitehead Monckton

9 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. 9

©Whitehead Monckton ©Whitehead Monckton 2012 Young and another v HM AG [2011] EWHC 3782 (Ch) Pension issue. Collection has to be sold to plug pension hole. 10

©Whitehead Monckton ©Whitehead Monckton

©Whitehead Monckton ©Whitehead Monckton 2012 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 12

©Whitehead Monckton ©Whitehead Monckton 2012 Phillips v RSPB [2012] EXHC (Ch) Gift in will to named charitable company effective at date of testatrix’s death. 13

©Whitehead Monckton ©Whitehead Monckton 2012 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… 14

©Whitehead Monckton ©Whitehead Monckton 2012 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. 15

©Whitehead Monckton ©Whitehead Monckton 2012 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. 16

©Whitehead Monckton ©Whitehead Monckton 2012 Contact Gail Hall