# The Finance Act 2010, Schedule 6, Part 1 (Further Consequential and Incidental Provision etc) Order 2012, Note: Explanatory note


(This note is not part of the Order)
This Order comes into force on 1st April 2012 and makes further consequential and incidental provision in consequence of, or in connection with, Part 1 of Schedule 6 to the Finance Act 2010 (c. 13) (“Schedule 6”).
Part 1 of Schedule 6 introduces a new definition of “charity” for the purposes of the taxes listed in paragraph 7 of that Schedule (it also introduces new definitions of “charitable trust” and “charitable company” for the purposes of those taxes). A body of persons or trust that is established in the UK, another EU member State or a territory specified in regulations made by the Commissioners for Her Majesty’s Revenue and Customs falls within the new definitions if it is established for charitable purposes within the meaning of section 2 of the Charities Act 2011 (c. 25) and the other conditions described in paragraph 1 of Schedule 6 are fulfilled.
Article 5 and 6 of this Order apply the new definition of “charity” for the purposes of the enactments relating to value added tax and capital gains tax to which the definition in the Charities Act 2011 applied before the coming into force of this Order.
The new definition of “charity” has already been applied for the purposes of Chapter 2 of Part 8 of the Income Tax Act 2007 (gift aid) (see paragraph 34 of Schedule 6). See also the Finance Act 2010, Schedule 6, Part 2 (Commencement) Order 2012 No.736 (c.18) which applies the new definitions for the purposes of the other taxes listed in paragraph 7 of Schedule 6. It also applies the new definitions of “charitable trust” and “charitable company” for the purposes of the Taxation of Capital Gains Act 1992 (c.12).
Article 7 amends the entry for “charity” in Schedule 4 to the Corporation Tax Act 2009 (c. 4) (index of defined expressions) to refer to paragraph 1 of Schedule 6 with effect from the times specified in article 4.
A Tax Information and Impact Note has not been prepared for this instrument as it gives effect to previously announced policy. A full Impact Assessment of the effect a new definition of charity will have on the costs of business and the voluntary sector was published by HMRC on 24th March 2010 and is available on the HMRC website at http://www.hmrc.gov.uk/budget2010/march/ext-char-tax-rel-ia-3755.pdfm. It remains an accurate summary of the impacts that apply to this instrument.

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Source: https://www.legislation.gov.uk/uksi/2012/735/note (the official version)
Page: https://openlegislation.uk/finance-act-2010-schedule-6-part-1-further-consequential-and-incidental-provision-etc-order-2012/note
Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives.