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My Lords, I declare an interest as a trustee of the National Portrait Gallery. This issue is particularly important as last week’s Red Book shows that the DCMS’s budget is going to fall in the latter part of this decade. This means that public institutions will be under greater financial pressure. The last thing they need, therefore, is an issue of this kind. I offer my support to my noble friend and urge the Minister to do everything he can to get rid of this anomaly.
My Lords, I declare an interest as a trustee of the National Portrait Gallery. This issue is particularly important as last week’s Red Book shows that the DCMS’s budget is going to fall in the latter part of this decade. This means that public institutions will be under greater financial pressure. The last thing they need, therefore, is an issue of this kind. I offer my support to my noble friend and urge the Minister to do everything he can to get rid of this anomaly.
I thank the noble Lord for that. It is precisely what we are doing. We are taking our time to consider the consultation and we are analysing the responses. We must get this right. As I said, charities have to comply with current consumer protection regulations. As it stands, most charities, perhaps because they do not understand the implications of the Act, have been claiming gift aid, even though their membership may be for a provision of services. We need to ensure that HMRC and the DCMS work through the technicalities so that we are not caught in the loophole that the noble Lord mentioned.