Charitable Incorporated Organisations - a reality at last

By Kevin Russell | 28 November 2012

The long awaited new charity structure, the Charitable Incorporated Organisation, is at last becoming a reality. The CIO was originally conceived many years ago, and enacted in the Charities Act 2006. Two sets of regulations were passed by the House of Lords Grand Committee on 27 November which mean that, at last, the first applications for CIO status can be made. A further two sets of regulations will need to be approved by Parliament to complete the new rules.

 

In the meantime, The Cabinet Office has issued an indicative timetable for the introduction of the new charity structure as follows:

 

Date

Applications open for:

 

 

10th December

The set up of CIOs by brand new charities with anticipated income of over £5,000 (first registrations expected in first week of January 2013)

 

 

1 March 2013

Existing unincorporated charities with an income of over £250,000 transferring assets into a new CIO.

 

 

1 May 2013

Existing unincorporated charities with an income of between £100,000 and £250,000 transferring assets into a new CIO.

 

 

1 July 2013

Existing unincorporated charities with an income of between £25,000 and £100,000 transferring assets into a new CIO.

 

 

1 October 2013

Existing unincorporated charities with an income of between £5,000 and £25,000 transferring assets into a new CIO.

 

 

1 January 2014

Existing unincorporated charities with an income of less than £5,000 transferring assets into a new CIO.

 

The set up of CIOs by brand new charities with anticipated income of less than £5,000

 

 

During 2014

Conversion of existing corporate charities into CIO’s. It is anticipated that that applications will need to be phased by income bracket.

Posted by Kevin Russell

Our Legal Eagle guru and Stewardship's Technical Director, Kevin constantly has his finger on the pulse of all things tax and charity law-related. His briefing papers for charities, churches and individuals are an invaluable resource on everything from VAT to Gift Aid. 

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