Update - Trust Corporation Status

As 31^st October 2022 section 32 of the Charities Act 2022 grants trust corporation status to any corporate body which is a trustee and which itself is a charity.

Examples of body corporates that are charities include, but are not limited to, charitable incorporated organisations (CIOs), charitable companies incorporated under the Companies Acts and charities created by an Act of Parliament.

What does the change mean?

Where the Act applies, the changes will simplify the process of disposing of charity land by removing the need to appoint a second trustee.

Proceed with Caution

Whilst the changes are welcome, and will do away with much of the bureaucracy surrounding trust corporation status, those dealing with charity land should approach the changes with caution:

1. The changes will not alter corporate trustees who themselves are not charities and the old regime will continue to apply.

2. The above provisions will not override any express provisions contained in the governing documents of a charity which specify a minimum number trustees needed to deal with land.

Please contact Nishita Gudka (Nishita.Gudka@lbmw.com)  or Jane Grenfell (Jane.Grenfell@lbmw.com)  for further information.