Presentation Template - Charities - April 2010CHARITY LAW AND PROPERTY
CONTROL AND MANAGEMENT OF THE CHARITY
Charitable trusts: trustees
executive committee
management committee
skills that they have
As a business person
Following the law and provisions of the charity’s
constitution
Specific statutory duties under sections 117 to 121 of
the Charities Act 2011
when “disposing” of land
access)
benefit
share of jointly owned property)
THESE DISPOSITIONS ARE NOT
Mortgages, which are subject to separate provisions
under section and 125 of the 2011 Act (Section
117(4)(b))
(Section 129(1), definition of “land”)
THESE DISPOSITIONS ARE ALSO NOT
INCLUDED
Mortgages, which are subject to separate provisions
under section and 125 of the 2011 Act (Section
117(4)(b))
(Section 129(1), definition of “land”)
NOT DISPOSITIONS:
A fire escape licence
The exercise of a tenant’s break right under a lease
The variation of a lease (not being an extension of the
term)
not involving a formal transfer of land
MORE NON-DISPOSITIONS
A rent review under a lease
A tenancy at will
not within the exceptions:
transaction is on the best terms
Dispositions to certain ‘connected persons’
CONNECTED PERSONS SECTION 118
A donor of any land to the charity
A child, parent, grandchild, grandparent, brother or
sister of any such trustee or donor
An officer, agent or employee of the charity
CONNECTED PERSONS
The spouse or civil partner
A person carrying on business in partnership
An institution controlled by them
Any substantial interest held by them in a body
corporate.
OR LESS
LIGHT TOUCH PROCEDURE SHORT
the requisite ability and practical experience to provide
them with competent advice on the proposed
disposition
Trustees to decide that they are satisfied that the
terms of the disposition are the best that can be
obtained for the charity
QUALIFIED SURVEYOR
Institution of Chartered Surveyors
Acting exclusively for the charity
Reasonably believed by the charity trustees to have
ability in and experience of the valuation of land of the
type and in the area concerned
THE ADVICE
In writing
Advising on whether to advertise
Providing the information and dealing with the matters
required by the QSR
Planning application?
purpose or
Unless a lease for two years or less without a
premium
PURCHASES
LEASES: THE MAJOR ISSUES
LANDLORD AND TENANT ACT 1954
Continuation of the term until expiry of statutory notice
Further continuation during court proceedings
Compensation if the landlord successfully objects
Protected tenancies
Limited scope for removing tenant
Possible liability for compensation
marketability
Previous negotiations usually irrelevant
NEGOTIATED LIMITATIONS ON REPAIR
schedule of condition)
Exclusion for existing defects
Landlord repairing
REPAIR: DILAPIDATIONS AND OTHER
repair
SERVICE CHARGE
Major works
Or for a building already in disrepair
SERVICE CHARGE: MODIFICATIONS
Service charge cap
Excluding certain items
CHECKING YOUR RESTRICTIONS
Authorised planning use
agreements
CDM regulations, fire regulations)
ARISE
Development of land before sale
Overage
Must not be for the purpose of avoiding tax
Furtherance of the charitable purposes of the
purchaser or another charity, or
Investment from which the profits are applied to
charitable purposes of the purchaser
Must be claimed
ON RELIEF
Change of use by the charity purchaser within three
years
VAT an additional expense
VALUE ADDED TAX: DISAPPLICATION
VALUE ADDED TAX: RELEVANT
Not as an office
Community swimming pools
fee paid
Sports pavilions
Church halls
Community centres
BUSINESS RATES
Can apply for relief of up to 100%
Recent cases led to increased scrutiny of letting
arrangements
PERSONAL LIABILITY
Trusts
Friendly Societies?
Charity trustees
requirements.
liability
Appeal to goodwill
Cap on liability
Charities Act and validity of transactions
Disqualification from trusteeship
STATUS
Companies
STATUTORY OBLIGATIONS
Fire regulations