Part 13F1Powers to amend trusts and use capital

Annotations:
Amendments (Textual)
F1

Pt. 13 heading substituted (14.6.2023) by Charities Act 2022 (c. 6), s. 41(4), Sch. 2 para. 19; S.I. 2023/643, Sch. para. 20(e)

F2Power to borrow from permanent endowment

Annotations:
Amendments (Textual)
F2

Ss. 284A-284D and cross-heading inserted (14.6.2023) by Charities Act 2022 (c. 6), ss. 12(2), 41(4); S.I. 2023/643, Sch. para. 4

284BCalculation of the “permitted amount”

1

The “permitted amount” for the purposes of section 284A(2) is given by the formula—

where—

  • V is the value of the available endowment fund on the relevant date (ignoring the value, if any, of the benefit of the debt owed by the charity trustees representing outstanding borrowing from the fund), and

  • B is the amount of the charity trustees’ outstanding borrowing from the available endowment fund on that date.

2

In subsection (1)—

  • “outstanding borrowing” means outstanding borrowing by virtue of section 284A or otherwise;

  • the “relevant date” is the date on which the trustees resolve to borrow from the available endowment fund (see section 284A(2)).

3

If a resolution under section 104A(2) has effect in respect of the available endowment fund (or any part of it), for the purposes of subsection (1) the value of the available endowment fund does not include any returns from the investment of the fund (or part) which have not been accumulated.