Commentary on provisions of Act Section 4: Connected charities running charitable activities in community buildings
Section 4 amends the rules for determining the specified amount for a charity that is connected with one or more charities in a tax year, and where at least one of the connected charities runs charitable activities in community buildings.
	They apply only where one or more of the connected charities runs charitable activities in a community building. If none of the connected charities runs charitable activities in a community building then the specified amount for the group is calculated in accordance with section 4 (connected charities) of the 2012 Act.
	Subsection (2) amends section 4(4) to make it clear that section 4 will not apply if section 9 applies.
	Subsection (3) inserts new subsections (2) to (6) into section 9 of the 2012 Act and omits old sections (2) to (8).
	New subsection (2) provides that section 9 does not apply if the conditions in the new section 9A are met.
	New subsection (3) provides that where section 9 applies, the specified amount (the amount in respect of which the charity may claim a top-up payment) for a connected eligible charity is determined by the new subsections (4) or (6) below.
	New subsection (4) provides that where any of the connected charities run charitable activities in a community building the specified amount is the total of the small donations made to the charity in that tax year in the local authority area in which each community building is situated. The donations must be made in person. The community building amount for a particular building cannot exceed £8,000.
	New subsection (5) provides that the community building amount is to be calculated in accordance with section 6(3) to (3B) of the 2012 Act.
	New subsection (6) specifies that where a connected charity does not run charitable activities in a community building in the tax year, the specified amount for that charity is nil.
	Subsection (4) inserts new section 9A into the 2012 Act, which allows a group of connected eligible charities to opt out of section 9 for the tax year, so that section 4 of the 2012 Act applies instead. Section 4 allows the group to share one specified amount of £8,000 between each eligible connected charity.
	New section 9A (1) provides that election under the new section 9A can only take effect when all of the connected charities gives notice to HMRC that they do not wish to claim under the community building element of the scheme but instead wishes, as a group to claim under section 4 of the 2012 Act.
	New section 9A(3) provides that a notice under section 9A can be withdrawn at any time by any of the connected charities but may not be withdrawn once all the connected charities within the group has given notice.
	For example, 2 eligible charities, A and B are connected in a tax year and A has a community building. Charity A gives notice before charity B. At this point the condition in section 9A (1) is not met because HMRC only has received a notice from charity A. Charity A withdraws the notice and subsequently charity B gives notice. The condition is still not met, because HMRC does not have notice from charity A (it has been withdrawn). However, if charity B had given notice before charity A decides that it wants to withdraw its notice, at that point HMRC would have had notice from both charities and the condition would have been met. At this point charity A and B would not be in a position to withdraw either of the notices.
	New section 9A (4) provides for regulations under section 11 to be made in connection with the new section 9A notice requirement, in particular the time limit for giving a notice, about the form and contents of the notice and any accompanying information.
	Subsection (5) provides a consequential amendment to section 14 of the 2012 Act (power to alter specified amount etc) as a result of amendments made to section 9 of the 2012 Act. .
	Subsection (6) inserts a new regulation 3A into the Small Charitable Donations Regulations 2013. New regulation 3A(1) allows HMRC to specify the form and contents of the notice under section 9A, and any accompanying information required in connection with the notice.
	New regulation 3A(2) allows HMRC to require the notice under section 9A to be given by each connected charity separately or by all of the connected charities jointly.
	New regulation 3A (3) specifies the time limits for section 9A notices.
	The effect of this is that where no top-up claims have been submitted for the tax year by any of the connected charities in the group, the time limit for giving notice to HMRC under section 9A is two years after the end of the tax year to which the claim relates. However, where any of connected eligible charities in the group have made a top-up claim for the tax year the time limit is 12 months from the date of that first claim. There are no separate 12 month time limits for each of the connected charities.
	Subsection (7) ensures that new regulation 3A (notices under section 9A(1) of the 2012 Act)) may be amended or revoked as if it had been inserted by regulations under section 11 of the 2012 Act.