Posted on 8th October 2008
The HMRC consultation on the Substantial Donor legislation ended 7th October.
Anti-avoidance legislation was introduced in Section 54 of the Finance Act 2006 to target instances of abuse by major donors. It is commonly referred to as the Substantial Donor (SD) legislation. However the legislation has raised a number of concerns and is catching a variety of innocent transactions by donors to charities, including foundations.
A working party comprised of Philanthropy UK, Charity Tax Group, the Institute of Chartered Accountants of England and Wales and Stewardship has been advocating the repeal of the legislation for the past year.
HMRC launched a consultation on draft legislation in July. The responses “will form a significant evidence base for policy making and they will be used to advise Ministers on the need for amendments to legislation as well as the associated detail”. A summary report of responses will be published on the HMRC internet site within three months of the closing date of the consultation.
- Philanthropy UK’s response is available for download from our website.
