Upcoming Key Changes To Charity Land Disposal

Published date05 April 2024
Subject Matterorporate/Commercial Law, Real Estate and Construction, Charities & Non-Profits
Law FirmEllisons Legal
AuthorHarjot Grewal

We have already seen several changes that have come into force last year which relate to land owned by charities.

A third stage of the implementation of the Charities Act 2022 is due in March 2024.

The new provisions include a requirement for an amended statement to be included for disposals and mortgages obtained by charities, certification requirements for trustees and regulations on new mortgages by liquidators, receivers, mortgagees or administrators.

At present, there is no requirement for charities involved in land disposals to obtain advice or a report when disposing of land to other charities at an undervalue. The change will introduce charities having the need to obtain a Designated Advisers Report unless the transfer of land is between charities and is for nil consideration.

Under the new requirements, there is a significant change regarding the disposal of charity land. Liquidators, receivers, mortgagees or administrators will not be obliged to adhere to the specific rules outlined in the Act for disposing of charity land. This exemption is in place due to the recognition that those individuals already have a professional duty when it comes to disposing of land assets. Their role requires them to act in the best interests of the charity and its stakeholders, ensuring that any asset disposals are carried out with due diligence and transparency.

Therefore, by exempting those individuals from the...

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