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Charities Act 2022 Changes due to be Introduced in June 2023

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The Charity Commission has published guidance about the provisions of The Charities Act 2022 which are due to be introduced in June 2023. The Charity Commission has stated that it will publish updated guidance on these changes on the day the provisions are implemented. A date in June 2023 is awaited.

The provisions to be implemented this month are:

Selling, Leasing and Disposing of Charity Land

Charities are required to comply with procedures in the Charities Act 2011 before disposing of their interests in land. Disposals include selling, transferring or leasing charity land or granting rights over it including easements.

The Charities Act 2022 proposes to amend the Charities Act 2011 to simplify some of the legal requirements, including:

  • widening the category of designated advisers who can provide charities with advice on particular types of disposals
  • confirming that a trustee, officer or employee can provide advice on a disposal provided they meet relevant requirements
  • giving trustees discretion to determine how to advertise a proposed disposal of charity land
  • removing the requirement for charities to get The Charity Commission’s authority to grant short residential leases to a charity employee (ie short periodic or fixed term tenancies)

Using Permanent Endowment

Permanent endowment is property whereby the charity must maintain the capital or capital value and can only spend the income arising out of the property.

The Charities Act 2022 introduces new statutory powers to enable charities to spend permanent endowment funds of £25,000 or less without The Charity Commission’s authority provided certain procedures are followed and enabling charities to borrow up to 25% of the value of their permanent endowment fund without Charity Commission Authority.

We will issue a further update when the date in June that the changes are anticipated to come into force is published. For further information please contact Gerry Morrison or Harriet Wheeldon.

This article is for general guidance only. It provides useful information in a concise form. Action should not be taken without obtaining specific legal advice.
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    Written by Gerry Morrison