Charities law is updated

Charities Act 2022 amends the current legislation


Charities Act 2022 received Royal Assent on 24 February 2022. The Department for Digital, Culture, Media and Sport will be working closely with the Charity Commission and other government departments to implement the phased changes and amendments over the next 18 months.

An overview of the changes and details of the implementation plan highlight:

  • changes to how charities sell, lease or transfer land (due to come into effect in spring 2023)
  • greater flexibility to make use of ‘permanent endowment’ – this is money or property originally meant to be held by a charity forever (due to come into effect in spring 2023); and
  • changes to how charities can amend their governing documents (due to come into effect in autumn 2023).

ACCA members are advised to consider any changes that need to be made to their reporting processes. No changes have so far been highlighted by the Charities Commission concerning matters of material significance reporting for independent examiners and auditors.

Members can access ACCA's technical factsheet Matters of material significance reportable to the charity, and a free on-demand webinar covering reporting duties of auditors and independent examiners. The guidance emphasises the reporting shortcomings identified by the Charity Commission, as well as the essential next steps for auditors and independent examiners.