On Monday 31 October 2022, the Government announced the implementation of the following provisions of the Charities Act 2022:

The key changes which came into force on 31 October 2022 include:

• Statutory power for trustees to be paid for the provision of goods to their charity. These changes will mirror provisions already included in the Charities Act 2011 enabling trustees to be paid for services and goods provided in connection with a service to their charity.
• Simplification of the process for handling donations which can no longer be spent on their intended fundraising campaign. Under the new Charities Act 2022, charities will no longer have to wait 6 months for a donor to request a refund and will be entitled to apply any donations below £1,000 towards a different campaign without the Charity Commission’s prior approval. The Charities Act 2022 also simplifies the process by which the Charity Commission may authorise any reallocation of donated funds.
• New powers for charities to amend their Royal Charters. Automatically conferring trust corporation status onto charitable companies. This will apply to existing and future charitable companies.
• Updates to the Charity Commission’s powers to make schemes for charitable companies, public notice requirements and the application of negative parliamentary procedure for any charity updating its governing document under s.73 Charities Act 2011.

Dates for the implementation of the next round of Charities Act 2022 provisions to be introduced have yet to be announced but are expected in Spring and Autumn 2023.

If you have any queries about how these changes might affect your charity please feel free to contact our Church and Charities team at PWW who would be happy to answer any queries you might have.

On 23 September 2022, the Mini Budget included changes to residential SDLT rates. Unlike the SDLT holiday of 2020-2021, which was only temporary, these stamp duty cuts have been confirmed by the government as permanent.

The SDLT changes came into effect immediately on the 23 September 2022.

What is the change?

For anyone purchasing a residential property in England and Northern Ireland, the government will permanently increase the nil-rate threshold from £125,000 to £250,000.

Buyers will pay stamp duty at a rate of 5% on the value of a property above £250,000 up to £925,000, 10% on the value between £925,000 and £1.5million, and then a top rate of 12% above £1.5 million.

This change is similarly reflected for first time buyers, where the threshold to start paying stamp duty land tax has been increased from £300,000 to £425,000. The maximum value of a property on which first-time buyers’ relief can be claimed will be £625,000 instead of the £500,000. This measure implies that all individuals purchasing residential property on or after 23 September will pay less or no SDLT at all.

For first time buyers looking to purchase in more expensive locations, such as London and the Southeast, they will be able to benefit from thousands of pounds in tax savings as a result of these changes.

Who does this apply to?

Everyone purchasing a property in England or Northern Ireland that had not completed by 23 September 2022.

Our thoughts

The cuts to stamp duty land tax will undoubtedly be most beneficial to first time buyers, who will embrace this as a welcome relief.

However, what is uncertain is whether these changes will provide a much-needed boost for the residential property market post pandemic.

There are further concerns about what is being done to ease the burden on those buying homes in the middle and upper price bands, especially with higher mortgage rates and increased interest rates probably lying ahead?

As residential property lawyers, this is something we are very aware of. We can offer advice and guidance to clients on how the recent announcement of SDLT cuts will impact property transactions going forward.

We were delighted to join the Remember a Charity Campaign Supporter Scheme, and take part in their annual Remember a Charity in your Will Week in September.

Gifts left to UK charities in Wills are tax-free, effectively increasing the Inheritance Tax threshold on donors’ estates, and for people that choose to donate 10% of their estate or more, this reduces the rate of Inheritance Tax from 40% to 36%, which can amount to a considerable reduction on larger estates.

Find out more about the Remember a Charity Campaign here.

Get in touch with our Private Client Team if you would like to discuss leaving a gift in your Will to charity.

It is with great pleasure that the partners of Pothecary Witham Weld and Haslam & Payne announce that, from 1st October 2021, Richard Payne, Mark Lewis and Jason Manley will be joining the property team at Pothecary Witham Weld as consultants.

Gerald Kidd, Managing Partner of Pothecary Witham Weld Solicitors said:

This affiliation will bring together two firms with long and trusted histories of conveyancing practice within Pimlico, the surrounding areas and wider afield. At the heart of this collaboration is the desire to provide clients new and old with an enhanced portfolio of residential and commercial legal expertise and services which are cost effective, reliable and sustainable for the future.“

Richard Payne, Partner at Haslam & Payne agreed and added:

We are very much looking forward to our new relationship with Pothecary Witham Weld going forwards and the benefits that this will provide to our established clients in the future.”