Charities Act 2006 (c. 50)

(The document as of February, 2008)

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(b) shall be subject to annulment in pursuance of a resolution of either House of Parliament.

(9) Section 86(3) below applies in relation to rules of the Lord Chancellor under this section as it applies in relation to regulations and orders of the Minister under this Act.

2C Appeal from Tribunal

(1) A party to proceedings before the Tribunal may appeal to the High Court against a decision of the Tribunal.

(2) Subject to subsection (3) below, an appeal may be brought under this section against a decision of the Tribunal only on a point of law.

(3) In the case of an appeal under this section against a decision of the Tribunal which determines a question referred to it by the Commission or the Attorney General, the High Court--

(a) shall consider afresh the question referred to the Tribunal, and

(b) may take into account evidence which was not available to the Tribunal.

(4) An appeal under this section may be brought only with the permission of--

(a) the Tribunal, or

(b) if the Tribunal refuses permission, the High Court.

(5) For the purposes of subsection (1) above--

(a) the Commission and the Attorney General are to be treated as parties to all proceedings before the Tribunal, and

(b) rules under section 2B(1) above may include provision as to who else is to be treated as being (or not being) a party to proceedings before the Tribunal.

2D Intervention by Attorney General

(1) This section applies to any proceedings--

(a) before the Tribunal, or

(b) on an appeal from the Tribunal,

to which the Attorney General is not a party.

(2) The Tribunal or, in the case of an appeal from the Tribunal, the court may at any stage of the proceedings direct that all the necessary papers in the proceedings be sent to the Attorney General.

(3) A direction under subsection (2) may be made by the Tribunal or court--

(a) of its own motion, or

(b) on the application of any party to the proceedings.

(4) The Attorney General may--

(a) intervene in the proceedings in such manner as he thinks necessary or expedient, and

(b) argue before the Tribunal or court any question in relation to the proceedings which the Tribunal or court considers it necessary to have fully argued.

(5) Subsection (4) applies whether or not the Tribunal or court has given a direction under subsection (2). "

(2) Schedule 3 (which inserts the new Schedule 1B into the 1993 Act) has effect.

(3) Schedule 4 (which inserts the new Schedules 1C and 1D into the 1993 Act) has effect.

Chapter 3 Registration of charities

General

9 Registration of charities

For section 3 of the 1993 Act substitute--

" 3 Register of charities

(1) There shall continue to be a register of charities, which shall be kept by the Commission.

(2) The register shall be kept by the Commission in such manner as it thinks fit.

(3) The register shall contain--

(a) the name of every charity registered in accordance with section 3A below (registration), and

(b) such other particulars of, and such other information relating to, every such charity as the Commission thinks fit.

(4) The Commission shall remove from the register--

(a) any institution which it no longer considers is a charity, and

(b) any charity which has ceased to exist or does not operate.

(5) If the removal of an institution under subsection (4)(a) above is due to any change in its trusts, the removal shall take effect from the date of that change.

(6) A charity which is for the time being registered under section 3A(6) below (voluntary registration) shall be removed from the register if it so requests.

(7) The register (including the entries cancelled when institutions are removed from the register) shall be open to public inspection at all reasonable times.

(8) Where any information contained in the register is not in documentary form, subsection (7) above shall be construed as requiring the information to be available for public inspection in legible form at all reasonable times.

(9) If the Commission so determines, subsection (7) shall not apply to any particular information contained in the register that is specified in the determination.

(10) Copies (or particulars) of the trusts of any registered charity as supplied to the Commission under section 3B below (applications for registration etc.) shall, so long as the charity remains on the register--

(a) be kept by the Commission, and

(b) be open to public inspection at all reasonable times.

3A Registration of charities

(1) Every charity must be registered in the register of charities unless subsection (2) below applies to it.

(2) The following are not required to be registered--

(a) any exempt charity (see Schedule 2 to this Act);

(b) any charity which for the time being--

(i) is permanently or temporarily excepted by order of the Commission, and

(ii) complies with any conditions of the exception,

and whose gross income does not exceed £100,000;

(i) is, or is of a description, permanently or temporarily excepted by regulations made by the Secretary of State, and

(ii) complies with any conditions of the exception,

and whose gross income does not exceed £100,000; and

(d) any charity whose gross income does not exceed £5,000.

(3) For the purposes of subsection (2)(b) above--

(a) any order made or having effect as if made under section 3(5)(b) of this Act (as originally enacted) and in force immediately before the appointed day has effect as from that day as if made under subsection (2)(b) (and may be varied or revoked accordingly); and

(b) no order may be made under subsection (2)(b) so as to except on or after the appointed day any charity that was not excepted immediately before that day.

(4) For the purposes of subsection (2)(c) above--

(a) any regulations made or having effect as if made under section 3(5)(b) of this Act (as originally enacted) and in force immediately before the appointed day have effect as from that day as if made under subsection (2)(c) (and may be varied or revoked accordingly);

(b) such regulations shall be made under subsection (2)(c) as are necessary to secure that all of the formerly specified institutions are excepted under that provision (subject to compliance with any conditions of the exception and the financial limit mentioned in that provision); but

(c) otherwise no regulations may be made under subsection (2)(c) so as to except on or after the appointed day any description of charities that was not excepted immediately before that day.

(5) In subsection (4)(b) above "formerly specified institutions" means--

(a) any institution falling within section 3(5B)(a) or (b) of this Act as in force immediately before the appointed day (certain educational institutions); or

(b) any institution ceasing to be an exempt charity by virtue of section 11 of the Charities Act 2006 or any order made under that section.

(6) A charity within--

(a) subsection (2)(b) or (c) above, or

(b) subsection (2)(d) above,

must, if it so requests, be registered in the register of charities.

(7) The Minister may by order amend--

(a) subsection (2)(b) and (c) above, or

(b) subsection (2)(d) above,

by substituting a different sum for the sum for the time being specified there.

(8) The Minister may only make an order under subsection (7) above--

(a) so far as it amends subsection (2)(b) and (c), if he considers it expedient to so with a view to reducing the scope of the exception provided by those provisions;

(b) so far as it amends subsection (2)(d), if he considers it expedient to do so in consequence of changes in the value of money or with a view to extending the scope of the exception provided by that provision,

and no order may be made by him under subsection (7)(a) unless a copy of a report under section 73 of the Charities Act 2006 (report on operation of that Act) has been laid before Parliament in accordance with that section.

(9) In this section "the appointed day" means the day on which subsections (1) to (5) above come into force by virtue of an order under section 79 of the Charities Act 2006 relating to section 9 of that Act (registration of charities).

(10) In this section any reference to a charity's "gross income" shall be construed, in relation to a particular time--

(a) as a reference to the charity's gross income in its financial year immediately preceding that time, or

(b) if the Commission so determines, as a reference to the amount which the Commission estimates to be the likely amount of the charity's gross income in such financial year of the charity as is specified in the determination.

(11) The following provisions of this section--

(a) subsection (2)(b) and (c),

(b) subsections (3) to (5), and

shall cease to have effect on such day as the Minister may by order appoint for the purposes of this subsection.

3B Duties of trustees in connection with registration

(1) Where a charity required to be registered by virtue of section 3A(1) above is not registered, it is the duty of the charity trustees--

(a) to apply to the Commission for the charity to be registered, and

(b) to supply the Commission with the required documents and information.

(2) The "required documents and information" are--

(a) copies of the charity's trusts or (if they are not set out in any extant document) particulars of them,

(b) such other documents or information as may be prescribed by regulations made by the Minister, and

(3) Where an institution is for the time being registered, it is the duty of the charity trustees (or the last charity trustees)--

(a) to notify the Commission if the institution ceases to exist, or if there is any change in its trusts or in the particulars of it entered in the register, and

(b) (so far as appropriate), to supply the Commission with particulars of any such change and copies of any new trusts or alterations of the trusts.

(4) Nothing in subsection (3) above requires a person--

(a) to supply the Commission with copies of schemes for the administration of a charity made otherwise than by the court,

(b) to notify the Commission of any change made with respect to a registered charity by such a scheme, or

(c) if he refers the Commission to a document or copy already in the possession of the Commission, to supply a further copy of the document.

(5) Where a copy of a document relating to a registered charity--

(a) is not required to be supplied to the Commission as the result of subsection (4) above, but

(b) is in the possession of the Commission,

a copy of the document shall be open to inspection under section 3(10) above as if supplied to the Commission under this section. "

10 Interim changes in threshold for registration of small charities

(1) At any time before the appointed day, the Minister may by order amend section 3 of the 1993 Act (the register of charities) so as to--

(a) replace section 3(5)(c) (threshold for registration of small charities) with a provision referring to a charity whose gross income does not exceed such sum as is prescribed in the order, and

(b) define "gross income" for the purposes of that provision.

(2) Subsection (1) does not affect the existing power under section 3(12) of that Act to increase the financial limit specified in section 3(5)(c).

(3) This section ceases to have effect on the appointed day.

(4) In this section "the appointed day" means the day on which section 3A(1) to (5) of the 1993 Act (as substituted by section 9 of this Act) come into force by virtue of an order under section 79 of this Act.

Exempt charities: registration and regulation

11 Changes in exempt charities

(1) Schedule 2 to the 1993 Act (exempt charities) is amended as follows.

(2) In paragraph (a) (general exemption by reference to law existing prior to Charities Act 1960 (c. 58)) after "1855" insert "(but see Note 1)".

(3) In paragraph (b) (certain specified universities, colleges and schools)--

(a) before "Queen Mary and Westfield College" insert "and"; and

(b) omit "and the colleges of Winchester and Eton".

(4) Before paragraph (i) insert--

" (h) a higher education corporation; " .

(5) After paragraph (i) insert--

" (j) a further education corporation; " .

(6) In paragraph (w) (exemption for institutions administered by or on behalf of institutions exempted under preceding provisions) after "last-mentioned institution" insert "(but see Note 2)".

(7) Omit paragraph (x) (Church Commissioners and institutions administered by them).

(8) In paragraph (y) (industrial and provident societies etc.) for the words from "and any" onwards substitute "and which is also registered in the register of social landlords under Part 1 of the Housing Act 1996;".

(9) At the end insert--

" Notes

1 Paragraph (a) above does not include--

(a) any Investment Fund or Deposit Fund within the meaning of the Church Funds Investment Measure 1958,

(b) any investment fund or deposit fund within the meaning of the Methodist Church Funds Act 1960, or

2 Paragraph (w) above does not include any students' union. "

(10) In section 24 of the 1993 Act (schemes to establish common investment funds), in subsection (8) (fund is to be a charity and, if the scheme admits only exempt charities, an exempt charity) omit the words from "; and if the scheme" onwards.

(11) The Minister may by order make such further amendments of Schedule 2 to the 1993 Act as he considers appropriate for securing--

(a) that (so far as they are charities) institutions of a particular description become or (as the case may be) cease to be exempt charities, or

(b) that (so far as it is a charity) a particular institution becomes or (as the case may be) ceases to be an exempt charity,

or for removing from that Schedule an institution that has ceased to exist.

(12) An order under subsection (11) may only be made for the purpose mentioned in paragraph (a) or (b) of that subsection if the Minister is satisfied that the order is desirable in the interests of ensuring appropriate or effective regulation of the charities or charity concerned in connection with compliance by the charity trustees of the charities or charity with their legal obligations in exercising control and management of the administration of the charities or charity.

(13) The Minister may by order make such amendments or other modifications of any enactment as he considers appropriate in connection with--

(a) charities of a particular description becoming, or ceasing to be, exempt charities, or

(b) a particular charity becoming, or ceasing to be, an exempt charity,

by virtue of any provision made by or under this section.

(14) In this section "exempt charity" has the same meaning as in the 1993 Act.

12 Increased regulation of exempt charities under 1993 Act

The 1993 Act is amended in accordance with Schedule 5 (which has effect for increasing the extent to which exempt charities are subject to regulation under that Act).

13 General duty of principal regulator in relation to exempt charity

(1) This section applies to any body or Minister of the Crown who is the principal regulator in relation to an exempt charity.

(2) The body or Minister must do all that it or he reasonably can to meet the compliance objective in relation to the charity.

(3) The compliance objective is to promote compliance by the charity trustees with their legal obligations in exercising control and management of the administration of the charity.

(4) In this section--

(a) "exempt charity" has the same meaning as in the 1993 Act; and

(b) "principal regulator", in relation to an exempt charity, means such body or Minister of the Crown as is prescribed as its principal regulator by regulations made by the Minister.

(5) Regulations under subsection (4)(b) may make such amendments or other modifications of any enactment as the Minister considers appropriate for the purpose of facilitating, or otherwise in connection with, the discharge by a principal regulator of the duty under subsection (2).

14 Commission to consult principal regulator before exercising powers in relation to exempt charity

After section 86 of the 1993 Act insert--

" 86A Consultation by Commission before exercising powers in relation to exempt charity

Before exercising in relation to an exempt charity any specific power exercisable by it in relation to the charity, the Commission must consult the charity's principal regulator. "

Chapter 4 Application of property cy-près

Cy-près occasions

15 Application cy-près by reference to current circumstances

(1) Section 13 of the 1993 Act (occasions for applying property cy-près) is amended as follows.

(2) In subsection (1)(c), (d) and (e)(iii), for "the spirit of the gift" substitute "the appropriate considerations".

(3) After subsection (1) insert--

" (1A) In subsection (1) above "the appropriate considerations" means--

(a) (on the one hand) the spirit of the gift concerned, and

(b) (on the other) the social and economic circumstances prevailing at the time of the proposed alteration of the original purposes. "

16 Application cy-près of gifts by donors unknown or disclaiming

(1) Section 14 of the 1993 Act (application cy-près of gifts of donors unknown or disclaiming) is amended as follows.

(2) In subsection (4) (power of court to direct that property is to be treated as belonging to donors who cannot be identified) after "court", in both places, insert "or the Commission".

17 Application cy-près of gifts made in response to certain solicitations

After section 14 of the 1993 Act insert--

" 14A Application cy-près of gifts made in response to certain solicitations

(1) This section applies to property given--

(a) for specific charitable purposes, and

(b) in response to a solicitation within subsection (2) below.

(2) A solicitation is within this subsection if--

(a) it is made for specific charitable purposes, and

(b) it is accompanied by a statement to the effect that property given in response to it will, in the event of those purposes failing, be applicable cy-près as if given for charitable purposes generally, unless the donor makes a relevant declaration at the time of making the gift.

(3) A "relevant declaration" is a declaration in writing by the donor to the effect that, in the event of the specific charitable purposes failing, he wishes the trustees holding the property to give him the opportunity to request the return of the property in question (or a sum equal to its value at the time of the making of the gift).

(4) Subsections (5) and (6) below apply if--

(a) a person has given property as mentioned in subsection (1) above,

(b) the specific charitable purposes fail, and

(5) The trustees holding the property must take the prescribed steps for the purpose of--

(a) informing the donor of the failure of the purposes,

(b) enquiring whether he wishes to request the return of the property (or a sum equal to its value), and

(6) If those trustees have taken all appropriate prescribed steps but--

(a) they have failed to find the donor, or

(b) the donor does not within the prescribed period request the return of the property (or a sum equal to its value),

section 14(1) above shall apply to the property as if it belonged to a donor within paragraph (b) of that subsection (application of property where donor has disclaimed right to return of property).

(7) If--

(a) a person has given property as mentioned in subsection (1) above,

(b) the specific charitable purposes fail, and

section 14(1) above shall similarly apply to the property as if it belonged to a donor within paragraph (b) of that subsection.

(8) For the purposes of this section--

(a) "solicitation" means a solicitation made in any manner and however communicated to the persons to whom it is addressed,

(b) it is irrelevant whether any consideration is or is to be given in return for the property in question, and

(c) where any appeal consists of both solicitations that are accompanied by statements within subsection (2)(b) and solicitations that are not so accompanied, a person giving property as a result of the appeal is to be taken to have responded to the former solicitations and not the latter, unless he proves otherwise.

(9) In this section "prescribed" means prescribed by regulations made by the Commission, and any such regulations shall be published by the Commission in such manner as it thinks fit.

(10) Subsections (7) and (10) of section 14 shall apply for the purposes of this section as they apply for the purposes of section 14. "

Schemes

18 Cy-près schemes

After section 14A of the 1993 Act (inserted by section 17 above) insert--

" 14B Cy-près schemes

(1) The power of the court or the Commission to make schemes for the application of property cy-près shall be exercised in accordance with this section.

(2) Where any property given for charitable purposes is applicable cy-près, the court or the Commission may make a scheme providing for the property to be applied--

(a) for such charitable purposes, and

(b) (if the scheme provides for the property to be transferred to another charity) by or on trust for such other charity,

as it considers appropriate, having regard to the matters set out in subsection (3).

(3) The matters are--

(a) the spirit of the original gift,

(b) the desirability of securing that the property is applied for charitable purposes which are close to the original purposes, and

(c) the need for the relevant charity to have purposes which are suitable and effective in the light of current social and economic circumstances.

The "relevant charity" means the charity by or on behalf of which the property is to be applied under the scheme.

(4) If a scheme provides for the property to be transferred to another charity, the scheme may impose on the charity trustees of that charity a duty to secure that the property is applied for purposes which are, so far as is reasonably practicable, similar in character to the original purposes.

(5) In this section references to property given include the property for the time being representing the property originally given or property derived from it.

(6) In this section references to the transfer of property to a charity are references to its transfer--

(a) to the charity, or

(b) to the charity trustees, or

(d) to a person nominated by the charity trustees to hold it in trust for the charity,

as the scheme may provide. "

Chapter 5 Assistance and supervision of charities by court and Commission

Suspension or removal of trustees etc. from membership

19 Power to suspend or remove trustees etc. from membership of charity

After section 18 of the 1993 Act insert--

" 18A Power to suspend or remove trustees etc. from membership of charity

(1) This section applies where the Commission makes--

(a) an order under section 18(1) above suspending from his office or employment any trustee, charity trustee, officer, agent or employee of a charity, or

(b) an order under section 18(2) above removing from his office or employment any officer, agent or employee of a charity,

and the trustee, charity trustee, officer, agent or employee (as the case may be) is a member of the charity.

(2) If the order suspends the person in question from his office or employment, the Commission may also make an order suspending his membership of the charity for the period for which he is suspended from his office or employment.

(3) If the order removes the person in question from his office or employment, the Commission may also make an order--

(a) terminating his membership of the charity, and

(b) prohibiting him from resuming his membership of the charity without the Commission's consent.

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