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The Charities Act 2006 (Changes in Exempt Charities) Order 2011

Draft. This instrument was laid in draft and may differ from the one made. Look for the made version under its title.

Draft 2011, ISBN 9780111511213

Original text. legislation.gov.uk does not revise statutory instruments, so later amendments are not shown here. Changes made to it are listed under each provision when known.

Draft Order laid before Parliament under section 74(5) of the Charities Act 2006, for approval by resolution of each House of Parliament.

Charities, England And Wales

Made ***

Coming into force in accordance with article 1

This Order is made in exercise of the powers conferred by sections 11(11) and (13) and 74(2) of the Charities Act 2006f1.

In so far as this Order makes provision to secure that, in so far as they are charities, institutions of a particular description become exempt charities, the Minister for the Cabinet Office is satisfied, in accordance with section 11(12) of that Act, that this Order is desirable in the interests of ensuring appropriate or effective regulation of those charities in connection with compliance by their charity trustees with their legal obligations in exercising control and management of the administration of those institutions.

A draft of this Order has been laid before Parliament in accordance with section 74(5) of that Act and approved by a resolution of each House of Parliament.

Accordingly, the Minister for the Cabinet Office makes the following Order.

Annotations to the whole text

Footnotes

f1

2006 c.50. For the definition of “relevant Minister” see section 74(7) and for “the Minister” see section 78(6).

Contents

  1. 1Citation and commencement
  2. 2Changes in exempt charities
  3. 3Consequential amendments
  4. Signature
  5. Schedule: CONSEQUENTIAL AMENDMENTS
  6. Part 1: PRIMARY LEGISLATION
  7. 1Further and Higher Education Act 1992
  8. 2Charities Act 1993
  9. 3School Standards and Framework Act 1998
  10. 4Charities Act 2006
  11. Part 2: SECONDARY LEGISLATION
  12. 5School Governance (Federations) (England) Regulations 2007
  13. 6The Charities Act 2006 (Commencement No. 5, Transitional and Transitory Provisions and Savings) Order 2008
  14. 7The Charities Act 1993 (Exception from Registration) Regulations 2008
  15. 8The Federation of Maintained Schools and Miscellaneous Amendments (Wales) Regulations 2010
  16. Explanatory note

1Citation and commencement

(1)

This Order may be cited as the Charities Act 2006 (Changes in Exempt Charities) Order 2011.

(2)

This Order comes into force on 1st August 2011.

2Changes in exempt charities

(1)

Schedule 2 to the Charities Act 1993f1 (exempt charities) is amended as follows.

(2)

After paragraph (ca) insert—

“(cb)

the governing body of any foundation, voluntary or foundation special school;

(cc)

any foundation body established under section 21 of the School Standards and Framework Act 1998f2;

(cd)

a sixth form college corporation (within the meaning of the Further and Higher Education Act 1992f3);”.

(3)

In paragraph (w) for “above” substitute “in any of paragraphs (a) to (ca), (cd) or (h) to (v) above”.

(4)

After paragraph (w) insert—

“(wa)

any institution which—

(i)

is administered by or on behalf of a body included in paragraph (cb) or (cc) above, and

(ii)

is established for the general purposes of, or for any special purpose of or in connection with, that body or any foundation, voluntary or foundation special school or schools.”.

3Consequential amendments

The Schedule (which contains consequential amendments) has effect.

Signature

Name

Parliamentary Secretary

Cabinet Office

Date

1Further and Higher Education Act 1992

In section 33M of the Further and Higher Education Act 1992f1, at the end insert “(and, as a result of its inclusion in Schedule 2 to the Charities Act 1993, is an exempt charity for the purposes of that Act)”.

2Charities Act 1993

In section 3A(5)(a) of the Charities Act 1993f1, after “3(5B)(a)” insert “(ii)”.

3School Standards and Framework Act 1998

In section 23 of the School Standards and Framework Act 1998f1—

(a)

in subsection (1A) for the words from “is an institution” to the end substitute “is, as a result of its inclusion in Schedule 2 to the Charities Act 1993, an exempt charity for the purposes of that Act.”; and

(b)

omit subsection (2).

4Charities Act 2006

In paragraph 194 of Schedule 8 to the Charities Act 2006f1, omit sub-paragraph (4).

5School Governance (Federations) (England) Regulations 2007

In regulation 33 of the School Governance (Federations) (England) Regulations 2007f1—

(a)

in paragraph (1) omit the words “which is an exempt charity for the purposes of the Charities Act 1993”; and

(b)

omit paragraphs (2) and (3).

6The Charities Act 2006 (Commencement No. 5, Transitional and Transitory Provisions and Savings) Order 2008

(1)

The Charities Act 2006 (Commencement No. 5, Transitional and Transitory Provisions and Savings) Order 2008f1 is amended as follows.

(2)

In article 1(2) for paragraph (b) of the definition of “formerly specified educational institution” substitute—

“(b)

an institution to which subsection (2) of that section of that Act would have applied had it not been repealed by the Charities Act 2006 (Changes in Exempt Charities) Order 2011;”.

(3)

In the following provisions, for “1st September 2011” substitute “1st August 2011”—

(a)

article 1 in both places it appears,

(b)

article 11 in both places it appears, and

(c)

article 19(1).

(4)

In article 6 omit paragraph (2).

(5)

In article 13 for paragraph (3) substitute—

“(3)

Nothing in sections 43, 44 and 44A of the 1993 Actf2 applies to—

(a)

a formerly specified educational institution; or

(b)

an Education Action Forum which does not fall within section 3A(2)(d) of the 1993 Actf3,

in respect of any financial year of the charity which is a transitory financial year.”.

(6)

For article 16(3) substitute—

“(3)

In this article “qualifying request” means a request made under section 47(2) of the 1993 Actf4 for the most recent accounts of a relevant educational charity at any time before—

(a)

in the case of an Education Action Forum, the charity trustees of that charity have prepared—

(i)

a statement of accounts under section 42(1) of that Actf5; or

(ii)

an account and statement under section 42(3) of that Actf6,

in respect of the standard financial year;

(b)

in the case of a formerly specified educational institution, the charity trustees of that charity have prepared a statement of account in respect of the standard financial year (whether under section 46 of that Act or otherwise).”.

(7)

In article 19 omit paragraphs (2) and (3).

(8)

In article 21(2), for “the transitional period end date a relevant educational charity” substitute “the exempt charity appointed day an Education Action Forum”.

(9)

For article 22(1) substitute—

“(1)

For the purposes of section 24 of the 1993 Actf7 (including the purposes of that section as applied by section 25 of that Actf8), a relevant educational charity is to be treated—

(a)

in the case of a formerly specified institution, as having been an exempt charity during the period starting on 31st January 2009 and ending immediately before the tranche 2 exempt status day;

(b)

in the case of an Education Action Forum, before the appointed day, as if it were an exempt charity.”.

(10)

In article 23 for “relevant educational charity” substitute “Education Action Forum”.

(11)

In article 24—

(a)

in paragraph (1)(b) omit “or (3)”; and

(b)

omit paragraph (3).

(12)

For article 25 substitute—

“25.

For the purposes of section 37(10) of the 1993 Act—

(a)

an Education Action Forum is to be treated as ceasing to be an exempt charity on the exempt charity appointed day;

(b)

a formerly specified educational institution is to be treated—

(i)

until the tranche 2 exempt status day as if it were an exempt charity; and

(ii)

on or after that day as if it had never ceased to be such a charity.”.

(13)

In article 26—

(a)

in paragraph (1)(b) omit “or (3)”; and

(b)

omit paragraph (3).

(14)

In article 27(2)(a) for “relevant educational charity” substitute “Education Action Forum”.

7The Charities Act 1993 (Exception from Registration) Regulations 2008

In regulation 2(2) of the Charities (Exception from Registration) Regulations 2008f1 omit sub-paragraphs (a) and (c).

8The Federation of Maintained Schools and Miscellaneous Amendments (Wales) Regulations 2010

In regulation 46 of the Federation of Maintained Schools and Miscellaneous Amendments (Wales) Regulations 2010f1—

(a)

in paragraph (1) omit the words “which is an exempt charity for the purposes of the Charities Act 1993”; and

(b)

omit paragraphs (2) and (3).

Explanatory note

(This note is not part of the Order)

The Minister for the Cabinet Office has the power, under section 11 of the Charities Act 2006, to amend Schedule 2 to the Charities Act 1993 to confer exempt charity status on a particular charity or class of charities. This Order confers exempt charity status on the governing bodies of foundation, voluntary and foundation special schools, on foundation bodies and on other bodies connected with such schools, and on sixth form college corporations. It makes related consequential amendments to primary and secondary legislation.

A full impact assessment of the effect that this Order will have on each group of exempt charities that is affected is available at [xxxxx] and is published with the Explanatory Memorandum alongside this Order on www.legislation.gov.uk.