HC Deb 01 December 1949 vol 470 cc115-6W
Mr. Hardy

asked the Chancellor of the Exchequer whether he has any statement to make in view of the fact that many corporate bodies which have hitherto been recognised by the Inland Revenue as charities and have limited themselves solely to charitable activities are now being told by the Inland Revenue that such recognition must be withdrawn because of the decision of the Court of Appeal in the case of the Oxford Group versus Commissioners of Inland Revenue.

Sir S. Cripps

Yes. I am aware of the difficulty that has arisen in the case of bodies, hitherto recognised as charities by the Inland Revenue, which include in the objects set out in their memorandum and articles powers to establish and support or aid in the establishment and support of charitable or benevolent associations and to subscribe or guarantee money for charitable or benevolent purposes or to do such things as the organisation may think conducive to the attainment of its objects. In view of the fact that these powers, in cases such as those to which my hon. Friend refers, have in the past been regarded as merely ancillary to admittedly charitable objects and have accordingly not been called in question by the Inland Revenue, I propose that, subject to certain conditions, an opportunity should be afforded to such bodies to amend their constitution without being deprived of relief from Income Tax in respect of the intervening period. The conditions are:

  1. (a) that the body concerned has hitherto been recognised by the Inland Revenue as a charity for Income Tax purposes,
  2. (b) that its status as such is impugned by reason only of the fact that its memorandum and articles include a paragraph or paragraphs in the terms to which I have referred or in terms closely approximating to those terms, and
  3. (c) that before the end of the current Income Tax year 1949–50 (ending 5th April, 1950), it amends its memorandum and articles to conform with the requirements of the law as now declared by the Court of Appeal.

Where these conditions are satisfied the Inland Revenue will allow relief in advance of legislative provision which I would propose to introduce in a Finance Bill in due course.