BREAKING NEWS: Charities Act 2011 Announcement

May 25, 2023

Charities Act 2011: Implementation of Second Tranche of 2022 Updates impacting Property and Property Disposals

Implementation Announced for June 2023

The Government has announced that the next tranche of sections of the Charities Act 2022 will be implemented in June 2023 (exact date still to be confirmed).

Importantly for legacy officers this includes changes to disposal of land:

  • Amending the definition of s.117 so that only land held by or appropriated to a single charity will be caught (and will require a s.119 Report);
  • Widening the category of designated advisors who can advise charities on disposals;
  • Providing trustees with more discretion on how to advertise a proposed disposal;
  • Removing the requirement to obtain Commission authority to grant a residential lease to a  charity employee for a short periodic or fixed term tenancy.

The first point above, so important to legacy officers, was ironically not highlighted in the official government announcement. It is, therefore, vital that legacy officers note the change!

Changes to Certificates and Statements Delayed

Importantly, however, changes to the certificates and statements which must be included in disposal documents will not be implemented until October 2023. Most frustratingly, this means that until the implementation date in October, where there is an appropriation to a single charity, that charity will still need to counter-sign the transfer (or other disposal document) to provide the certificate.  This will mean signature by either the trustees or those parties with delegated power on their behalf.

A link to Foot Anstey’s updated Factsheet on disposal of property is here.

Watch this space for further updates on the implementation plan and third tranche of changes in due course…

Anna Phillips and Aiden Wiffen of Foot Anstey LLP

Anna Phillips and Aiden Wiffen