Introduction Details of the Section
2.Chapter 2 of Part 8 of ITA 2007 (ITA) provides for and regulates Gift Aid. Gift Aid is a tax relief which, subject to certain conditions, charities and Community Amateur Sports Clubs can claim on gifts of cash from donors who pay income tax at basic or higher rates. Such gifts are referred to as `qualifying donations`.
3.Section 416 of ITA gives the meaning of qualifying donation and sets out the conditions a donation must fulfil to be a qualifying donation. Amongst other things, a qualifying donation must be the subject of a declaration given by the donor to the charity. This is called a Gift Aid Declaration (GAD).
4.Section 428 of ITA gives the meaning of GAD. In accordance with section 428 ITA, a GAD must contain information that is required under the regulations relating to GADs. There are other requirements in section 428, but these are not relevant to this measure and are not discussed further in this note.
5.The regulations which have been made under section 428 and which are currently in force are The Donations to Charity by Individuals (Appropriate Declarations) Regulations 2000.
6.Subsection (2)(a) amends section 416 of ITA 2007 (the meaning of qualifying donation) by inserting provisions for Gift Aid Declarations (GADs) to be made by an intermediary acting on behalf of an individual making a gift and to be given to an intermediary acting on behalf of a charity.
7.Subsection (2)(b) inserts a new section 416(1A) ITA which sets out what an intermediary is, and allows for the scenario where an intermediary acts on behalf of both the individual and the charity.
8.Subsection (3) of the draft section inserts:
	new section 428(3)(a) of ITA which provides for the regulations which set out the requirements for intermediaries and charities to keep necessary records with respect to GADs;
	new section 428(3)(b) of ITA which provides for the regulations to require intermediaries and charities to produce such records for inspection by an officer of HM Revenue & Customs; and
	new section 428(3)(c) of ITA which provides for the regulations to require intermediaries to provide certain information to donors at times to be specified.
9.Subsection (3) of the section also inserts a new section 428(4) of ITA which enables the regulations to make differing provisions for different cases or circumstances, including, but not limited to, depending who makes and who receives the GAD.
10.The amendments will have effect in relation to gifts made on or after a day appointed by regulations made by HM Treasury. It is expected that such day will coincide with the making of the new GAD regulations relating to intermediaries.