Explanatory note

These Regulations amend the Charitable Deductions (Approved Schemes) Regulations 1986 (S.I. 1986/2211) (“the principal Regulations”). The amendments are mainly in consequence of the introduction in section 38 of the Finance Act 2000 (c. 17) (“section 38”) of a supplement equal to 10 per cent. of sums donated under payroll deduction schemes under section 202 of the Income and Corporation Taxes Act 1988 (c. 1) (“section 202”). The supplement is to be paid by an agent approved in accordance with regulation 5 of the principal Regulations (“an approved agency”).

Regulation 1 provides for commencement, citation and effect, and regulation 2 for interpretation.

Regulation 3 amends regulation 2 of the principal Regulations by adding a new definition of “supplement”.

Regulation 4 amends regulation 3 of the principal Regulations in consequence of the repeal of subsection (7) of section 202 by subsection (5) of section 38.

Regulation 5 amends regulation 4A in the principal Regulations so as to prescribe a period within which supplements are to be paid to the charity or charities by an approved agency.

Regulation 6 amends regulation 9(3) of the principal Regulations so as to provide that an approved agent who does not pay supplements within the period prescribed must inform the Board by furnishing a statement of the amounts and the reasons why it has not done so.

Regulation 7 amends regulation 11(1) of the principal Regulations so as to require an approved agency to keep records for not less than three years of all supplements paid to charities and all amounts received from the Board under section 38.

Regulation 8 inserts new regulation 16 in the principal Regulations which allows the amount of any overpayment of supplement by the Board to an approved agency to be assessed and recovered as if it were unpaid tax.