Legacy Management: latest developments June 2023
Insight
In this month’s update:
- We have updated our Charities Act 2022 resources, in light of the ongoing implementation of the legislation, with articles on charity land disposals; permanent endowment; the Universities and Colleges Estates Act; mergers, incorporations and winding up shell charities; ex gratia payments out of charity funds and Statutory and Royal Charter charities,
- Laetitia Rawnsley reviews HMRC’s Consultation on tackling charity tax abuse, and
- Henrietta Mason considers the Law Commissioner’s Wills Project and an interesting recent case on how to align the capacity tests in Banks v Goodfellow and the Mental Capacity Act 2005.
We hope you find these articles interesting and informative.
The Charities Act 2022
We have updated our Charities Act 2022 resources, in light of the ongoing implementation of the legislation (and some delays in implementation) and have articles on changes in relation to:
The Universities and Colleges Estates Act
Mergers, incorporations and winding up shell charities
Ex gratia payments out of charity funds
Statutory and Royal Charter charities
We will continue to keep these up to date as developments unfold to keep you informed of the implications for you and your charity.
HMRC Consultation on tackling charity tax abuse
In this article Laetitia Ransley reviews the HMRC consultation on charity taxation rules in light of its stated aim of tackling non-compliance and protecting the integrity of the sector. She concludes that some adjustment of the rules is likely, and that there may be a reduction in certainty for charities in key areas, as well as an increased need for effective decision-making and record-keeping as more decisions become open to review.
Changes to the test for testamentary capacity?
The Law Commissioners have re-started the wills project, which is great news! They are looking to issue a supplementary consultation paper in September. The current understanding is that this paper will be limited to reviewing the laws around revocation of wills by marriage and electronic wills. However, whilst we understand they are not planning to consult again on issues raised in the last consultation paper in 2017, they are still forming views on policy in this area and are interested in hearing views from stakeholders. To this end, we have reviewed Baker v Hewston [2023] EWHC 1145, an interesting recent case on testamentary capacity in which the Judge purports to find a compromise position between the test in the Mental Capacity Act 2005 and the test in Banks v Goodfellow 1870.
This publication is a general summary of the law. It should not replace legal advice tailored to your specific circumstances.
© Farrer & Co LLP, June 2023
