Political Parties, Elections and Referendums Bill - continued        House of Lords

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SCHEDULE 10
 
  CONTROL OF DONATIONS TO RECOGNISED THIRD PARTIES
  PART I
 
Operation and interpretation of Schedule
     1 - (1) This Schedule has effect for controlling donations to recognised third parties other than registered parties.
 
      (2) The following provisions have effect for the purposes of this Schedule.
 
      (3) In accordance with sub-paragraph (1), "recognised third party" does not include a recognised third party which is a registered party.
 
      (4) "Relevant donation", in relation to a recognised third party, means a donation which is made at any time to the recognised third party for the purpose of meeting controlled expenditure.
 
      (5) "Donation" shall be construed in accordance with paragraphs 2 and 3.
 
 
Donations: general rules
     2. - (1) "Donation", in relation to a recognised third party, means (subject to paragraph 3)-
 
 
    (a) any gift to the recognised third party of money or other property;
 
    (b) any money spent (otherwise than by a recognised third party or a person authorised to act on its behalf) in paying any controlled expenditure incurred by the recognised third party;
 
    (c) any money lent to the recognised third party otherwise than on commercial terms;
 
    (d) the provision otherwise than on commercial terms of any property, services or facilities for the use or benefit of the recognised third party (including the services of any person);
 
    (e) the provision of any sponsorship in relation to the recognised third party; and
 
    (f) in the case of a recognised third party, other than an individual, any subscription or other fee paid for affiliation to, or membership of, the third party.
      (2) Any money or other property which is transferred to a recognised third party for a consideration which is less than the value of the money or (as the case may be) the market value of the property shall be regarded as constituting a gift to the recognised third party.
 
      (3) Anything given or transferred to any officer, member or agent of a recognised third party in his capacity as such (and not for his own use and benefit) is to be regarded as given or transferred to the recognised third party (and references to donations received by a recognised third party accordingly include donations so given or transferred).
 
      (4) In this paragraph-
 
 
    (a) any reference to anything being given or transferred to a recognised third party includes a reference to its being given or transferred either directly or indirectly through any third person;
 
    (b) "gift" includes bequest.
 
Payments etc not to be regarded as donations
     3. - (1) None of the following shall be regarded as a donation-
 
 
    (a) the provision by an individual of his own services which he provides voluntarily in his own time and free of charge;
 
    (b) any interest accruing to a recognised third party in respect of any donation which is dealt with by the responsible person in accordance with section 51(2)(a) or (b) (as applied by paragraph 6).
      (2) Any donation whose value (as determined in accordance with paragraph 4) is less than £200 shall be disregarded.
 
 
Value of donations
     4. - (1) The value of any donation falling within paragraph 2(1)(a) shall be taken to be the market value of the property in question.
 
      (2) Where, however, paragraph 2(1)(a) applies by virtue of paragraph 2(2), the value of the donation shall be taken to be the difference between-
 
 
    (a) the value of the money, or the market value of the property, in question, and
 
    (b) the consideration provided by or on behalf of the recognised third party.
      (3) The value of any donation falling within paragraph 2(1)(c) or (d) shall be taken to be the amount representing the difference between-
 
 
    (a) the actual cost (if any) to the recognised third party, and
 
    (b) the cost that would have been incurred by the recognised third party had the loan been made, or the property, services or facilities been provided, on commercial terms.
      (4) The value of any donation falling within paragraph 2(1)(e) shall be taken to be the value in monetary terms of the benefit conferred by the sponsorship in question on the donee; and any such value conferred on the sponsor shall be disregarded.
 
      (5) Where a donation such as is mentioned in sub-paragraph (3) or (4) confers an enduring benefit on the donee over a particular period, the value of the donation-
 
 
    (a) shall be determined at the time when it is made, but
 
    (b) shall be so determined by reference to the total benefit accruing to the donee over that period.
 
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Prepared 17 March 2000