Political Parties, Elections and Referendums Bill — 27 Nov 2000 at 17:07
Resolved in the negative, and amendment disagreed to accordingly.
moved Amendment No. 5:
After Clause 69, insert the following new clause--
:TITLE3:TAX RELIEF ON POLITICAL DONATIONS
(" . After section 379 of the Income and Corporation Taxes Act 1988 (interpretation of sections 369 to 378) there shall be inserted--
"Tax relief on political donations.
379AA.--(1) Tax relief shall be available to an individual ("the donor") in accordance with this section on qualifying political donations made by him of up to £500 in any year of assessment.
(2) A donation is a qualifying political donation for the purposes of this section if it is made to a registered political party (other than a minor party) and--
(a) it takes the form of the payment of a sum of money,
(b) it is not subject to a condition as to repayment,
(c) it is not conditional on or associated with, or part of an arrangement involving, the acquisition of property by the political party, its members or accounting units, otherwise than by way of gift, from the donor or a person connected with him, and
(d) the donor is a registered elector.
(3) For the purposes of this section a political party is an eligible political party if--
(a) it is a registered party within the meaning of section 22 of this Act other than a minor party, and
(b) at the last general election preceding the donation in question--
(i) two members of that party were elected to the House of Commons, or
(ii) one member of that party was elected to the House of Commons and not less than 150,000 votes were given to candidates who were members of that party.
(4) If an individual makes a qualifying donation he shall be entitled, on making the payment, to deduct and retain out of it a sum equal to basic rate tax thereon.
(5) Where a sum is deducted under subsection (4) above, the sum deducted shall be treated as income tax paid by the person to whom the payment is made.
(6) Any person by whom a qualifying donation is received shall be entitled to recover from the Board, in accordance with regulations, an amount which by virtue of subsection (5) above is treated as income tax paid by him; and any amount so recovered shall be treated for the purposes of the Tax Acts in like manner as the qualifying political donation to which it relates.
(7) The following provisions of the Taxes Management Act 1970, namely--
(a) section 29(1)(c) (excessive relief) as it has effect apart from section 29(2) to (10) of that Act,
(b) section 30 (tax paid in error, etc) apart from subsection (1B),
(c) section 86 (interest), and
(d) section 95 (incorrect return or accounts),
shall apply in relation to an amount which is paid to any person by the Board as an amount recoverable in accordance with regulations made by virtue of subsection (6) above but to which that person is not entitled as if it were income tax which ought not to have been repaid and, where that amount was claimed by that person, as if it had been repaid as respects a chargeable period as a relief which was not due.
(8) In the application of section 86 of the Taxes Management Act 1970 by virtue of section (7) above in relation to sums due and payable by virtue of an assessment made for the whole or part of a year of assessment ("the relevant year of assessment") under section 29(1)(c) or 30 of that Act, as applied by that subsection, the relevant date--
(a) is 1st January in the relevant year of assessment in a case where the person falling within subsection (5) above has made a relevant interim claim; and
(b) in any other case is the later of the following dates, that is to say--
(i) 1st January in the relevant year of assessment; or
(ii) the date of the making of the payment by the Board which gives rise to the assessment.
(9) The Board may by regulations make provision--
(a) for the purposes of any provision of this section which relates to any matter or thing to be specified by or done in accordance with regulations;
(b) with respect to the furnishing of information by donors or recipients, including, in the case of recipients, the inspection of books, documents and other records on behalf of the Board; and
(c) generally for giving effect to this section.
(10) In this section--
"financial year" in relation to any person, means a financial year of that person for the purposes of the relevant regulations;
"interim claim" means an interim claim within the meaning of the relevant regulations;
"relevant interim claim" means, in relation to an assessment made for a period coterminous with, or falling wholly within, a person's financial year, an interim claim made for a period falling wholly or partly within that financial year; and
"the relevant regulations" means regulations made under subsection (9) above.
(11) Section 839 of this Act shall apply for the purposes of this section to determine whether one person is connected with another."").
On Question, Whether the said amendment (No. 5) shall be agreed to?
Their Lordships divided: Contents, 199; Not-Contents, 136.
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