TAX NEWS: Retrospective legislation at its worst - The case of charitable donations. By Nichola Ross Martin
Nichola Ross Martin reports on the recent debate in the House of Commons over the anti-avoidance draft clause in the 2006 Finance Act dealing with abuse of charity tax reliefs.
The clause in question - 54 'Transactions with substantial donors' - focuses on abuse of charity tax reliefs, particularly where donors make gifts with conditions attached.
In the words of Dawn Primarolo speaking during the Commons debate last week:
"Substantial donors either make payments or transfer assets to charities, and then receive back money, shares or property.