PART 5Charity mergers

Gifts to merged charity

33Gifts to merged charity

(1)

The Charities Act 2011 is amended as follows.

(2)

In section 239 (effect of registration of CIO), for subsection (3) substitute—

“(3)

Subsection (4) applies to a gift if—

(a)

the gift would have taken effect as a gift to one of the old CIOs if it had not been dissolved, and

(b)

the date on which the gift would have taken effect is a date on or after the date of the registration of the new CIO.

(4)

The gift takes effect as a gift to the new CIO.”

(3)

In section 244 (effect of confirmation of resolution to transfer property etc to another CIO), for subsection (2) substitute—

“(2)

Subsection (3) applies to a gift if—

(a)

the gift would have taken effect as a gift to the transferor CIO if it had not been dissolved, and

(b)

the date on which the gift would have taken effect is a date on or after the date on which the resolution is confirmed (or treated as confirmed).

(3)

The gift takes effect as a gift to the transferee CIO.”

(4)

In section 311 (effect of registering charity merger on gifts to transferor), for subsection (2) substitute—

“(2)

Subsection (2A) applies to a gift, other than an excluded gift, if—

(a)

the gift would have taken effect as a gift to the transferor if the transferor had been in existence, and

(b)

the date on which the gift would have taken effect is a date on or after the date of the registration of the merger.

(2A)

The gift takes effect as a gift to the transferee.”

(5)

The amendments made by this section have effect in relation to all gifts made on or after the date this section comes into force; and it does not matter if the will or other document, agreement, transaction or other means which gives rise to the gift was executed or entered into before that date.

Vesting declarations

34Vesting declarations: exclusions

In section 310(3) of the Charities Act 2011 (exclusion of certain property from automatic vesting following a vesting declaration)—

(a)

omit paragraph (a);

(b)

for paragraph (b) (but not the “or” following it) substitute—

“(b)

any land held by the transferor under a lease or agreement if, had the transferor assigned its interest in the land on the specified date to the transferee, that assignment would have given rise to—

(i)

an actionable breach of covenant or condition against alienation, or

(ii)

a forfeiture,”.

35Vesting permanent endowment following a merger

In section 306 of the Charities Act 2011 (meaning of “relevant charity merger”), in subsection (2)—

(a)

in paragraph (a), omit “a”;

(b)

omit paragraph (b) and the “and” before it.