News
Finance Act 2010: a threat to NGOs?
30 June 2010
A potentially serious threat to the UK international development sector is contained in the Finance Bill which is currently passing through Parliament. A provision in the bill could restrict NGO activities overseas, particularly in war zones and states with weak banking systems.
The Bill appears to give HM Revenue & Customs (HMRC) greater power to decide whether or not tax relief is available on payments made by NGOs to overseas bodies.
A payment will not be charitable expenditure if HMRC considers that the trustees have not taken reasonable steps to ensure that the payment will be applied for charitable purposes.
Bond is exploring an amendment to the Finance Bill, which would scrap this proposed increase in HMRC's powers.
We are asking for responses from members: read more on our law and regulation pages.
