by Emma de Courcy & Rachel Mainwaring-Taylor of Lawrence Graham

In recent years, the role of charity trustees has become significantly more demanding. The Charity Commissioners Report 1988, echoed in 2000, has gone so far as to warn them that they could become "personally liable to account for taxation liabilities which are unnecessarily incurred directly or indirectly as a result of inefficient administration". For these people, and their advisers, Robert Venables and James Kessler's recent book – The Taxation of Charities 4th Edition - will prove invaluable reading.

The book is well structured with both sections on "Contents at a glance" and "Table of contents in detail"; the latter of which runs to no less than 19 pages. Additionally, there is a table of cases, a table of statutes and a full index; all of which should enhance the ability of the practitioner to locate the answer required. Further, the book is divided into logical sections with each point benefiting from being labelled as a separate numbered point with good spacing and headings to match. The print font is larger, and the paper thicker, than that found in most reference books which is helpful. So the reader should not be put off by thinking that it may be heavier going than it is.

Criticism was levelled at the first edition by Mark H Robson in British Tax Review , due to a lack of discussion of VAT issues, but he understood at the time that Venables and Kessler hoped to produce a companion volume in due course. The current authors are unaware of whether this is still intended, but VAT issues are now dealt with in this edition to a level that should satisfy most practitioners.

Although this is the fourth edition of Venables & Kessler's authoritative tome on the subject, it is the first in which Kessler alone has contributed, due to Venables' now too hectic schedule. It comes at an important time, following various influential cases, Finance Act 2002 changes, the Customs and Revenue Booklet CWL4 and, most importantly, the Revenue's Guidance Notes for Charities.

The Guidance Notes, Kessler argues, should be regarded as a Revenue Manual due to their persuasive influence. They are incorporated at relevant points throughout the text and Kessler, as ever, is prepared to argue their rights and wrongs. While this may prove too weighty for a majority of lay trustees, the book is well laid out, starts at the basics and goes on to the most complex issues which are informatively discussed for professional advisers who are concerned with relatively obscure technical issues. These issues benefit from comprehensive in-depth technical analysis, but can be glossed over if the reader is after more essential points.

Gift Aid or "qualifying donations" (FA 2000) have been an area of major change since the last edition of this book. All of the major points and issues are well discussed, but for interest purposes we would highlight the area of gifts from parents to schools. It was thought to be established Revenue practice to accept that gifts by parents to schools would qualify for Gift Aid relief if "(a) all children are treated equally, regardless of parental contribution; and (b) one parent's donation is not conditional on donations by others". However, Kessler now argues that the Guidance Notes are contrary to this established view and that they are unfairly restricting when parents can claim this relief. This should be considered by educational trusts and schools generally because either the Government is being optimistic as to parents' generosity or it may lead to even less extra-curricular trips than the recent run of tragedies would suggest.

Qualifying Investment Donations Relief (QIDR) was introduced in 2000 and extended to land in 2002. Land may not be something that is frequently given to charities, but when it is the sums involved tend to be highly significant, so it is an area worthy of further consideration. One particularly interesting point with this is that it reflects Government policy of increasing assets which are available for relief. In the dim and distant past, cash was the only asset eligible for tax relief when gifted to charities, recently that was extended to shares and now that has moved even further on to land. Could it be an area of even further expansion?

The decision of the Special Commissioners in Soutter's Executry v IRC (unreported) August 2002, regarding deeds of variation and the implications thereof is discussed. What is more interesting however, is Kessler's comments going a few steps further than those raised in Soutter. Soutter dealt with the prospective variation of an expired life interest and the commentary goes on to discuss the merits or feasibility of retrospective variation of expired life interests. While this may be more advanced than that needed by most practitioners, Kessler has at least pointed the reader towards further tax planning opportunities which may well be worthy of consideration. Such snippets of guidance are not always so forthcoming from our learned friends.

In summary, this is a book that no charity practitioner could afford not to have on their shelf for "dipping into" as and when required. Interestingly enough, for those who are not convinced or whose firms are having a particularly rein-tightening year, you can have a read through the first couple of chapters on Kessler's internet site for free.