§ Mr. FlightTo ask the Chancellor of the Exchequer what assessment he has made of the impact of the ending of ACT recovery on the finances of charities; and if he will make a statement. [72773]
§ Ms HewittThe withdrawal of payable tax credits will be completed from 6 April 1999. We recognise the special position of charities and provided generous compensation for them through public expenditure, for the withdrawal of their payable tax credits. This compensation takes the form of a payment to a charity of a percentage of the dividends it receives, and will apply for five years from 6 April 1999 on a tapering basis, giving charities an opportunity to adjust to the withdrawal of payable tax credits.