Charities Act 2022: Implementation Plan

Following our series of articles providing you with practical guidance on the key changes under the Charities Act 2022, in this article we look at when each of those provisions is expected to be implemented.

For a general introduction to the Act, please see our article Charities Act 2022: a practical introduction for charity trustees

For our previous articles in this series, please click on each of the links below:

Charities Act 2022: practical guidance on new rules relating to charitable ex-gratia payments

Charities Act 2022: practical guidance on amending governing documents

Charities Act 2022: practical guidance on disposal of charity land

Charities Act 2022: practical guidance on failed appeals

Charities Act 2022: practical guidance on new power to buy goods from trustees

The Charities Act 2022 received Royal Assent on 24 February 2022.  Whilst this has the effect of the Act becoming law, the provisions in the Act will not have practical effect until they are implemented by the responsible Government department, which in this case is the Department for Digital, Culture, Media and Sport (DCMS).  DCMS has recently published an indicative timetable for implementation of the provisions of the Act setting out when it expects the various provisions to come into force and therefore have practical effect.

The Act is expected to be implemented in three stages over the coming eighteen months.  The first tranche of provisions are expected to come into force in Autumn 2022, followed by the second tranche in Spring 2023 and the final tranche in Autumn 2023.

Our series so far has focused on four key areas of the new Act and, in keeping with that focus, we have set out below when each of those four key areas is expected to be implemented.

New power to buy goods from trustees – Autumn 2022

Failed appeals – Autumn 2022

Disposal of charity land – Spring 2023

Amending governing documents – Autumn 2023

Whilst the timetable is helpful in giving a steer as to when we might expect to see the provisions coming into force, it is only ‘indicative’ this stage. The DCMS will be working with the Charity Commission and other government departments to implement any necessary further legislation, update existing guidance and, where necessary, prepare new guidance.  The DCMS is also intending to implement the non-legislative changes recommended by the Law Commission’s report alongside the implementation of the provisions in the Act. 

The timetable could be subject to further change in the future.  Any changes to the timetable will be published on the Charities Act 2022: implementation plan page on the Government’s website which can be accessed here

For completeness, we have set out below the list of when each of the provisions of the Act is expected to be implemented.

Provisions of the Act expected to come into force Autumn 2022

Section 4: Power to amend Royal Charters

Section 5: Orders under section 73 of the Charities Act 2011

Sections 6 and 7: Cy-près powers

Section 8: Power of the court and the Commission to make schemes

Sections 15 and 16: Ex gratia payments

Section 30: Remuneration of charity trustees etc providing goods or services to charity

Section 32: Trustee of charitable trust: status as trust corporation

Section 36: Costs incurred in relation to Tribunal proceedings etc

Part of Section 37: Public notice as regards Commission orders etc.

Part of Section 40 and Schedule 2: Minor and consequential amendments

Provisions of the Act expected to come into force Spring 2023

Sections 9-14 and 35a: Permanent endowment

Sections 17-23: Charity land

Section 24 and Sch 1: Amendments of the Universities and College Estates Act 1925

Sections 25-28: Charity names

Section 38 and 39: Connected persons

Part of Section 40 and Schedule 2: Minor and consequential amendments

Provisions of the Act expected to come into force Autumn 2023

Section 1-3: Charity constitutions

Section 29: Powers relating to appointments of trustees

Section 31: Remuneration etc of charity trustees etc

Sections 33-35: Charity mergers

Section 37: For remaining purposes

Section 40 and Schedule 2: For remaining purposes

Should you wish to read the detail of the Act, the full text of the Act and its accompanying explanatory notes are available on the Government’s website which can be accessed here.

At Birketts we have a dedicated Charities Team ready to advise you on all aspects of charity law, including the new provisions under the Charities Act 2022. If you would like to speak with someone about the matters raised in this series of articles or any other charity related matter, please contact Liz Brownsell (Partner and Head of Charities) or another member of the Birketts Charities Team.