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Charities Act 2011
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Changes over time for: Section 281
Version Superseded: 14/06/2023
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- 14/03/2012- Amendment
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281Power of unincorporated charities to spend capital: generalE+W
(1)This section applies to any available endowment fund of a charity which is not a company or other body corporate.
(2)But this section does not apply to a fund if sections 282 to 284 (power to spend larger fund given for particular purpose) apply to it.
(3)If the condition in subsection (4) is met in relation to the charity, the charity trustees may resolve for the purposes of this section that the fund, or a portion of it, ought to be freed from the restrictions with respect to expenditure of capital that apply to it.
(4)The condition is that the charity trustees are satisfied that the purposes set out in the trusts to which the fund is subject could be carried out more effectively if the capital of the fund, or the relevant portion of the capital, could be expended as well as income accruing to it, rather than just such income.
(5)Once the charity trustees have passed a resolution under subsection (3), the fund or portion may by virtue of this section be expended in carrying out the purposes set out in the trusts to which the fund is subject without regard to the restrictions mentioned in that subsection.
(6)The fund or portion may be so expended as from such date as is specified for this purpose in the resolution.
(7)In this section “available endowment fund”, in relation to a charity, means—
(a)the whole of the charity's permanent endowment if it is all subject to the same trusts, or
(b)any part of its permanent endowment which is subject to any particular trusts that are different from those to which any other part is subject.
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