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Charities Bill [HL]

My Lords, I beg to move that the House do agree with the Commons in their Amendment No. 41. This simple-looking amendment responds fully and directly to amendments tabled both in this House by the noble Lord, Lord Hodgson, and in another place by Andrew Turner MP, the honourable Member for the Isle of Wight. The aim is to allow trustees, where they have power to sell land and decide to sell it, to spend the capital proceeds of the sale without having to replace the capital from their charity’s income. The underlying purpose of the original exclusion of land was to make it clear that charity trustees who do not have power to sell land could not use these provisions to allow the capital proceeds of an unauthorised sale to be spent. We are now satisfied that these provisions could not be used in that way, even if, as we propose through this amendment, the exclusion of land were removed. In addition to these provisions, the Charity Commission already has power under Section 26 of the Charities Act 1993 to authorise the expenditure of permanent endowment capital where it is expedient to do so. That power continues. I understand that after the Bill is passed the commission will publish guidance on the application of these new provisions and on the use of its existing powers. I hope that that will assist those who might benefit from this provision. Moved, That the House do agree with the Commons in their Amendment No. 41.—(Lord Bassam of Brighton.)