This is the 4^th edition of this book but the first edition written solely by James Kessler QC. In its 495 pages the reader will find a detailed discussion of how charities in the United Kingdom are taxed. The coverage deals with income tax, capital gains tax, inheritance tax, VAT and, where relevant, stamp duty. The law is that in force on 1 December 2002. There have been no significant changes since that date.

In the Preface to this new edition, the author gives the book’s objective as combining a thorough exposition of the law with a discussion of the practical problems which are faced by charities and donors to charity. This objective is met very well. The discussion of the practical issues also covers tax planning opportunities and the pitfalls which can arise when carrying out such planning.

The text includes many extracts from Inland Revenue and Customs & Excise guidance material; in particular, the Inland Revenue’s Guidance Notes for Charities published in November 2000 (which are wholly relevant in 2003). The text does much more than just refer to these. The author discusses, critically, the legal basis for the "official views" with pragmatic practical advice being given to the effect that, in very many cases, there is little to be gained from trying to arrange matters in a different way from that covered by the official view. The reader is rewarded by having the critical analysis set out to allow a view to be taken on any specific situation as to whether an alternative basis of proceeding should take place. The discussion of case law is extensive and there is much useful information relating, generally, to charities which is, strictly, outside the remit from the title.

Books dealing with the taxation of charities tend to deal either with the direct taxes or VAT. This book provides extensive coverage of both. It includes coverage of the issues concerning both the direct tax and VAT issues relating to a particular area of activity – e.g. trading by charities – within the one chapter.

As implied by the title, the main coverage is of how charities and those donating to charity are taxed. In addition, the book discusses the general law relating to charities under the law of England and Wales. There are very few references to the law of Scotland or that of Northern Ireland. However, since in both of these jurisdictions what is a charity for taxation purposes is determined under the law of England and Wales, rather than under the domestic law of charity, the book will be of great benefit to practitioners in Scotland and Northern Ireland as well.

At page 344, there is a discussion of the meaning of "charity" for CGT purposes. The author states that, for this purpose, the word "charity" has its "charity law meaning" rather than its "income tax meaning". On the basis of the definition given for the "charity law meaning", charities outside England and Wales would not be eligible for the CGT exemption for gains applied for charitable purposes only (since they are not subject to the control of the High Court). Fortunately, this is not a view taken by the Inland Revenue.

As noted earlier, this new edition is the first undertaken by James Kessler QC alone. The book demonstrates its earlier editions by the frequent references to "we", "the authors" and "the authors’ views" and less frequently to "the author’s view". Indeed, on page 149 the words "the author’s view" and "the authors’ views" are seen in a span of only 5 lines. This is a very minor feature which it is presumed arises from the revisions to the previously jointly authored text. It is not difficult to deal with this slip.

The book contains a useful index as well as a table of cases and a table of statutes. In addition to a detailed table of contents, there is a useful one page "Contents at a glance" setting out the chapters of the book.

This is an excellent book which should be on the bookshelf of all those who advise charities on taxation issues, whether external professional advisers or those working in this area inside a charity – and be taken from that bookshelf on a regular basis.

Professor Alex McDougall