Second Tranche of Charities Act 2022 Provisions Come into Effect
The second group of reforms under the Charities Act 2022 was brought into effect on 14 June 2023, by the Charities Act 2022 (Commencement No. 2 and Saving Provisions) Regulations 2023 (SI 2023/643).
The first tranche of provisions came into effect in October 2022 and the third tranche is due to be implemented by the end of 2023.
The second tranche of provisions includes:
Permanent Endowment
- New powers to borrow from permanent endowment
- New powers to make social investments using permanent endowment (under total return arrangements)
- Reforms to the release of permanent endowment
With these reforms now in force, charities may wish to consider how best to harness their permanent endowment funds, with particular attention to new powers to borrow and make social investments using permanent endowment.
Charity Land
- Reforms of the content required in reports on the disposals of charity land
- Reforms widening the pool of people who can provide reports on the disposal of charity land
Charities looking to dispose of land can now benefit from a somewhat less burdensome regime for the disposal of charity land.
Charity Names
- Wider powers for the Charity Commission to change charity names
Further Guidance
You can refer to our update on the Implementation of the Charities Act 2022 for more information, including the deferral of some charity land provisions from the second to the third tranche.
For further background reading on the Charities Act 2022 see our pieces on the Charities Bill receiving royal assent and the Government's response to Law commission recommendations.