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The Charities Act 2022 became law on 24 February and yesterday a further tranche of reforms (including to the rules regarding permanent endowment and disposals of charity land) came into force.
The changes are expected to save charities in England and Wales significant time and costs which can be applied towards charitable purposes rather than administration. (For detail on the changes see our previous post: The Charities Act 2022 – Plain sailing for charity trustees, Alyssa Haggarty (burges-salmon.com)) The Government’s Impact Assessment for the Act prepared last year estimated that charities will save at least £2.8 million per year from reduced time and legal costs, or £28 million over 10 years.
A third tranche of reforms is expected to be brought into force later this year, which will include changes to the rules on amending charity governing documents and mergers.
The Charity Commission has updated its guidance to reflect these changes, and HMRC has issued its first newsletter in a new series intended to update charities on tax developments which is available here: Newsletter 1 — June 2023 - GOV.UK (www.gov.uk)
For further information or advice please contact Catherine de Maid (Catherine.demaid@burges-salmon.com) or Alyssa Haggarty (alyssa.haggarty@burges-salmon.com).
Aarti Thakor, Director of Legal & Accounting Services at the Charity Commission said: “The latest changes introduced by the Charities Act 2022 give the charities we regulate more flexibility and greater powers. These are positive changes that will impact a significant number of charities, so it is important all organisations, big or small, take the time to check what this means for them. This is especially important if they are looking, for example, to dispose of land. We have updated our guidance to help trustees understand the changes, and our contact centre is open to those who need further support.”
