DISPOSALS OF CHARITY INTERESTS IN PROPERTY
OG 54 A1 – 14 March 2012
This guidance outlines our policy on the disposal of charity interests in property - land and buildings. This most commonly involves sales and leases, although the disposal of other types of interest in land is included except for disposals by way of a mortgage or charge which is covered in OG 22, Borrowing and mortgages. The guidance gives an overview of the various aspects to be considered by trustees when disposing of interests in land and buildings and the reasons for the requirements under sections 117-123 of the 2011 Act. Case workers are advised to read CC28 Sales, leases, transfers or mortgages: What trustees need to know about disposing of charity land in order to be aware of the advice we give to trustees.
This series of operational guidance then gives more detail and links to other internal guidance and external websites for more information. Guidance in OG 204, Small charities: Disposal of charity land and buildings, reflecting the approach in B2, examines whether and when we can apply proportionality and "de minimis" or materiality principles to disposals.
1. What this guidance covers
2. What is the purpose of the constraints on trustees when making a disposal of charity land?
3. What do we mean by "disposal" of "land and buildings"?
4. Power of disposal
5. The criteria with which trustees must comply
6. When a disposal does not need our consent, are there any requirements trustees must meet?
7. Corporate property
8. Sales by executors and administrators
9. Proceeds of sale
10. Other guidance with useful information on disposals
Glossary of Terms used in this Guidance
Index to further related information
3.1 What is "land" for the purposes of section 117?
3.2 What is a disposal of land?
3.3 What is not a disposal of land in this context?
4.1 Use of statutory power or other powers
4.2 Duty of care
4.3 Scheme or Order to confer power
4.4 Do the trustees own the title to the land?
4.5 What if the land is vested in the Official Custodian for Charities?
6.1 Requirements under s.119
6.2 Requirements under s.120
6.3 Requirements for mortgages
6.4 Requirements under s.121 – designated land
6.5 Exceptions to these requirements
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