Political Parties, Elections and Referendums Bill -
Amendments to be debated in the House of Lords
- continued
House of Lords

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After Clause 66
 
  
BY THE LORD MACKAY OF ARDBRECKNISH
THE VISCOUNT ASTOR
 
182     Insert the following new Clause-- 
 ("PART IVA

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-- 
 <~et>Tax relief on political donations.     379A.--(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 an eligible political 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, otherwise than by way of gift, from the donor or a person connected with him, and
 
  
    (d)  the donor is resident in the United Kingdom at the time the donation is made.
    (3)  For the purposes of this section a political party is an eligible political party if, at the last general election preceding the donation in question--
 
  
    (a)  two members of that party were elected to the House of Commons, or
 
  
    (b)  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 Management Act, 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 repaid 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 Management Act 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 1 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)  1 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."")
Tax relief on political donations.
  
Schedule 6
 
  
BY THE LORD BASSAM OF BRIGHTON
 
182A     Page 114, line 28, leave out ("and") and insert ("or") 
182B     Page 114, line 34, leave out ("and") and insert ("or") 
182C     Page 114, line 39, leave out ("and") and insert ("or") 
  
BY THE LORD MACKAY OF ARDBRECKNISH
 
182D     Page 114, line 40, at end insert ("(but not in connection with the discharge of his official functions as the holder of such an office)") 
182E     Page 115, line 4, at end insert--
        ("(  )  The Electoral Commission shall from time to time publish guidance for--
      (a)  members of registered parties;
      (b)  members' associations; and
      (c)  holders of relevant elective offices;
    as to what are, and what are not, "political activities" for the purposes of this Schedule.")
 
  
BY THE LORD BASSAM OF BRIGHTON
 
182F     Page 115, line 5, after ("2") insert (", 2A") 
  
BY THE LORD MACKAY OF ARDBRECKNISH
THE VISCOUNT ASTOR
 
182G*     Page 115, leave out line 21 and insert ("member of the House of Commons;") 
  
BY THE LORD BASSAM OF BRIGHTON
 
183     Page 115, line 36, at end insert--
        ("(  )  Where--
      (a)  at a time when any order is in force under section 65(1) a donation is received by a regulated donee resident or carrying on activities in Great Britain, and
      (b)  the order provides for this sub-paragraph to apply to any such donation,
    section 49(2)(c) shall have effect in relation to the donation as if it referred only to a registered party which is registered in the Great Britain register.")
 
183A     Page 115, line 40, at end insert--
      ("(aa)  any sponsorship provided in relation to the donee (as defined by paragraph 2A);")
 
183B     Page 115, line 41, leave out ("the donee or a person acting on his or its behalf)") and insert ("or on behalf of the donee)") 
183C     Page 115, leave out line 48 
183D     Page 116, line 1, leave out sub-paragraph (2) and insert--
        ("(2)  Where--
      (a)  any money or other property is transferred to a regulated donee pursuant to any transaction or arrangement involving the provision by or on behalf of the donee of any property, services or facilities or other consideration of monetary value, and
      (b)  the total value in monetary terms of the consideration so provided by or on behalf of the donee is less than the value of the money or (as the case may be) the market value of the property transferred,
    the transfer of the money or property shall (subject to sub-paragraph (2B)) constitute a gift to the donee for the purposes of sub-paragraph (1)(a).
        (2A)  In determining--
      (a)  for the purposes of sub-paragraph (2)(c), whether any money lent to a regulated donee is so lent otherwise than on commercial terms, or
      (b)  for the purposes of sub-paragraph (2)(d), whether any property, services or facilities provided for the use or benefit of a regulated donee is or are so provided otherwise than on such terms,
    regard shall be had to the total value in monetary terms of the consideration provided by or on behalf of the donee in respect of the loan or the provision of the property, services or facilities.
        (2B)  Where (apart from this sub-paragraph) anything would be a donation both by virtue of sub-paragraph (1)(aa) and by virtue of any other provision of this paragraph, sub-paragraph (1)(aa) (together with paragraph 2A) shall apply in relation to it to the exclusion of the other provision of this paragraph.")
 
183E     Page 116, line 4, after ("member") insert (", trustee") 
183F     Page 116, line 13, at end insert-- 
 ("Sponsorship 
 
        2A.--(1) For the purposes of this Schedule sponsorship is provided in relation to a regulated donee if--
      (a)  any money or other property is transferred to the donee or to any person for the benefit of the donee, and
      (b)  the purpose (or one of the purposes) of the transfer is (or must, having regard to all the circumstances, reasonably be assumed to be)--
            (i)  to help the donee with meeting, or to meet, to any extent any defined expenses incurred or to be incurred by or on behalf of the donee, or
            (ii)  to secure that to any extent any such expenses are not so incurred.
        (2)  In sub-paragraph (1) "defined expenses" means expenses in connection with--
      (a)  any conference, meeting or other event organised by or on behalf of the donee,
      (b)  the preparation, production or dissemination of any publication by or on behalf of the donee, or
      (c)  any study or research organised by or on behalf of the donee.
        (3)  The following do not, however, constitute sponsorship by virtue of sub-paragraph (1)--
      (a)  the making of any payment in respect of--
            (i)  any charge for admission to any conference, meeting or other event, or
            (ii)  the purchase price of, or any other charge for access to, any publication;
      (b)  the making of any payment in respect of the inclusion of an advertisement in any publication where the payment is made at the commercial rate payable for the inclusion of such an advertisement in any such publication.
        (4)  The Secretary of State may by order made on the recommendation of the Commission amend sub-paragraph (2) or (3).
        (5)  In this paragraph "publication" means a publication made available in whatever form and by whatever means (whether or not to the public at large or any section of the public).")
 
183G     Page 116, line 17, leave out ("or a referendum") 
183H     Page 116, line 17, at end insert--
      ("(  )  the provision of assistance by a person appointed under section 9 of the Local Government and Housing Act 1989;")
1989 c. 42.
183J     Page 116, line 29, leave out from ("which") to ("and") in line 31 and insert ("(in accordance with any enactment) falls to be included in a return as to election expenses in respect of a candidate or candidates at a particular election;") 
183K     Page 116, line 40, at beginning insert ("the total value in monetary terms of") 
183L     Page 116, line 40, at end insert--
        ("(2A)  The value of any donation falling within paragraph 2(1)(aa) shall be taken to be the value of the money, or (as the case may be) the market value of the property, transferred as mentioned in paragraph 2A(1); and accordingly any value in monetary terms of any benefit conferred on the person providing the sponsorship in question shall be disregarded.")
 
183M     Page 116, leave out lines 43 to 46 and insert--
      ("(a)  the total value in monetary terms of the consideration that would have had to be provided by or on behalf of the donee in respect of the loan or the provision of the property, services or facilities if--
            (i)  the loan had been made, or
            (ii)  the property, services or facilities had been provided,
 
 {jf48}on commercial terms, and{PA  
 
      (b)  the total value in monetary terms of the consideration (if any) actually so provided by or on behalf of the donee")
 
183N     Page 116, line 47, leave out sub-paragraph (4) 
183P     Page 117, line 1, leave out ("or (4)") 
  
BY THE LORD MACKAY OF ARDBRECKNISH
THE VISCOUNT ASTOR
 
184     Page 117, line 21, leave out ("not less") and insert ("more") 
185     Page 117, line 37, leave out ("not less") and insert ("more") 
186     Page 119, line 11, leave out ("not less") and insert ("more") 
  
BY THE LORD BASSAM OF BRIGHTON
 
186A     Page 119, line 11, leave out ("£1,000;") and insert ("£5,000 (where the donee is a members association) or £1,000 (in any other case);") 
  
BY THE LORD MACKAY OF ARDBRECKNISH
THE VISCOUNT ASTOR
 
187     Page 119, line 18, leave out ("not less") and insert ("more") 
  
BY THE LORD BASSAM OF BRIGHTON
 
187A     Page 119, line 18, leave out ("£1,000.") and insert ("£5,000 (where the donee is a members association) or £1,000 (in any other case).") 
187B     Page 119, line 25, leave out ("58") and insert (" 57") 
  
BY THE LORD MACKAY OF ARDBRECKNISH
THE VISCOUNT ASTOR
 
188     Page 121, line 30, leave out paragraph 13 
189     Page 121, line 34, leave out ("not less") and insert ("more") 
  
BY THE LORD BASSAM OF BRIGHTON
 
189A     Page 121, line 34, leave out ("£1,000.") and insert ("£5,000 (where the donee is a members association) or £1,000 (in any other case).") 
189B     Page 122, line 28, after ("9(3),") insert ("9(4),") 
189C     Page 122, line 33, leave out from ("shall") to second ("to") in line 34 and insert ("include power to make provision for disapplying any specified provisions of this Part, for such period as is specified, in relation") 
190     Page 122, line 37, at end insert--
        ("(  )  Each order under section 65(1)(b) (as applied by sub-paragraph (1)) shall be so made as to--
      (a)  apply to every person or members association falling within sub-paragraph (1)(a) or (b), and
      (b)  make the same provision with respect to every such person or members association.")
 
 
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