The Substantial Donor Transactions (Variation of Threshold Limits) Regulations 2009

Made: 22nd April 2009

Laid before the House of Commons: 22nd April 2009

Coming into force: 23rd April 2009

The Treasury make the following Regulations in exercise of the powers conferred by section 506C(9) of the Income and Corporation Taxes Act 1988¹ and section 557(3) of the Income Tax Act 2007:

Citation and commencement

1

These Regulations may be cited as the Substantial Donor Transactions (Variation of Threshold Limits) Regulations 2009 and shall come into force on 23rd April 2009.

Amendments to the Income and Corporation Taxes Act 1988 and the Income Tax Act 2007

2

In each of—

• (a) section 506A(2)(b) of the Income and Corporation Taxes Act 1988², and

• (b) section 549(2)(b) of the Income Tax Act 2007,

for “£100,000” substitute “£150,000”.

Signed

Steve McCabe — Bob Blizzard — Two of the Lords Commissioners of Her Majesty’s Treasury — 22nd April 2009

Explanatory note

(This note is not part of the Regulations)

EXPLANATORY NOTE

Sections 506A to 506C of the Income and Corporation Taxes Act 1988 (for corporation tax) and sections 549 to 557 of the Income Tax Act 2007 (for income tax) introduced legislation taxing specified transactions between charities and substantial donors to those charities. A “substantial donor” is a person who has made tax-relievable gifts to the charity of at least £25,000 in a period of 12 months or £100,000 in a period of 6 years. These Regulations increase that 6 year threshold to £150,000.

Regulation 1 provides for citation and commencement (and for the increase to take effect from the day after Budget Day 2009) and regulation 2 for the increase in the threshold.

A Regulatory Impact Assessment has not been prepared for this instrument as it is considered to have a negligible impact on business, charities or voluntary bodies.

Footnotes