SCHEDULEFurther modification of the 2005 Act
I19Removal from Register: protection of assets
1
Section 19 (removal from register: protection of assets) of the 2005 Act is modified as follows.
2
For subsection (1) substitute—
1
A body removed from the Register (under section 18 or otherwise) continues to be under a duty to apply its protected charitable assets—
a
in accordance with its charitable purposes as set out in its entry in the Register immediately before its removal (its “most recent purposes”), and
b
to provide public benefit in Scotland or elsewhere.
1A
In this section, “protected charitable assets” means—
a
any property acquired, or any property representing property acquired, before the body was removed from the Register,
b
any property representing income which accrued before the body was removed from the Register, and
c
the income from any such property.
1B
The application of protected charitable assets in accordance with a body’s most recent purposes is not to be presumed to be for the public benefit.
1C
In determining whether a body is applying its protected charitable assets for public benefit, section 8(2) applies subject to the modifications in subsection (1D).
1D
The modifications are that—
a
in the opening words, the reference to determining whether a body provides or intends to provide public benefit is to be read as if it were a reference to determining whether a body is applying its protected charitable assets for public benefit,
b
in the closing words of paragraph (a), the reference to the consequence of the body exercising its functions is to be read as if it were a reference to the consequence of the body applying its protected charitable assets.
3
In subsection (2), for “property and income referred to in subsection (1)” substitute “its protected charitable assets”
.
4
In subsection (4), for “property or income” substitute “protected charitable assets”
.
5
In subsection (5)—
a
in paragraph (a)—
i
for “property or income”, in both places where it occurs, substitute “protected charitable assets”
,
ii
before “purposes” insert “charitable”
,
b
in paragraph (b), for “property and income” substitute “protected charitable assets”
.
6
In subsection (7)—
a
for “property or income”, in the first place where it occurs, substitute “protected charitable assets”
,
b
for “that property or income” substitute “the protected charitable assets”
.