Updated for 2026: What Do the Charities Act 2022 Changes Mean for Your Charity?

Last reviewed: 8th June 2026.

Key Points

● The Charities Act 2022 is now fully in force, having been commenced in four tranches between October 2022 and November 2025, completing the most significant overhaul of charity law in England and Wales for over a decade.

● Sections 1 to 3 introduced a statutory power for unincorporated charities to amend their governing documents, bringing them into line with charitable companies and CIOs; these provisions came into force on 7th March 2024.

● The final tranche, on 27th November 2025, activated the ex gratia payment rules: charities can self-authorise small moral payments up to income-based limits without Charity Commission consent, though 16 statutory museums and galleries remain subject to a partial exclusion.

● Trustees should review their governing documents, internal payment policies and land disposal procedures, since the new rules attach specific procedural requirements to each new freedom.

● Charities exploring restructuring, merger or disposal of property now operate under a clearer legal framework. However, the procedural steps attached to each power remain mandatory.

The Charities Act 2022 received Royal Assent on 24th February 2022 and addressed technical problems identified by the Law Commission in its September 2017 report, Technical Issues in Charity Law. The Commission described those problems as causing "unnecessary expense and preventing charities from dedicating their full resources to the public good." Four years on from Royal Assent, all of the Act's provisions are operational. Trustees and their advisers need to understand not only what changed, but also when each change took effect, because the rules on documentation and procedural compliance differ across the four tranches.

What Changed and When

The government commenced the Act in four groups, allowing charities and the Commission time to update guidance and systems before each set of provisions took effect.

The first tranche, on 31st October 2022, introduced a power for trustees to be paid for supplying goods to the charity (section 30), automatic trust corporation status for corporate charities (section 32), simpler rules for cy-près fundraising appeals that fall short or exceed their target (sections 6 and 7), and a power for Royal Charter charities to amend their charters through the Privy Council (section 4).

The second tranche, on 14th June 2023, covered disposal of charity land (sections 17 and 19 to 22), the permanent endowment framework (sections 9 to 14), and the Commission's expanded powers over charity names (sections 25 to 28). Charities with permanent endowment funds of £25,000 or less gained the power to spend down the fund without Commission authority. All endowed charities gained the power to borrow up to 25 per cent of the fund's value without consent.

The third tranche, on 7th March 2024, brought into force the governing document amendments under sections 1 to 3, remaining charity land provisions under sections 18 and 23, and the merger rules under sections 33 to 35. The Universities and College Estates Act 1925 amendments were included in the third commencement regulations but delayed until 19 May 2025.

The fourth tranche, on 27th November 2025, activated sections 15 and 16 on ex gratia payments. A partial exclusion applies to 16 named statutory museums and galleries.

Governing Documents and Charitable Purposes

Sections 1 to 3 of the 2022 Act gave trusts and unincorporated associations a new statutory power to amend their governing documents. Before these provisions came into force, unincorporated charities had no general statutory basis for altering their rules; many relied on procedures in their own constitutional documents that were often unclear or outdated.

The new power distinguishes between routine administrative amendments and what the Act calls "regulated alterations." Trustees can change administrative matters, such as appointment procedures, member communications and meeting arrangements, by passing the appropriate resolution without approaching the Commission. Regulated alterations are different: changes to charitable purposes, to trustee benefit provisions, or to winding-up clauses all require the Commission's prior written consent.

This mirrors the existing position for CIOs and charitable companies, placing all charity structures on a harmonised footing. The Commission applies the same legal test across all charity types, reducing uncertainty for trustees and advisers working with mixed portfolios. For charity formation and administration advice, including reviewing or updating a governing document, specialist legal input is advisable before passing any resolution under the new power.

Suppose a Solihull-based unincorporated charitable association wants to broaden its purposes to serve a wider community. Under the old law, a cy-près scheme was often required. Under sections 1 to 3, trustees pass a resolution and apply to the Commission for consent. The Commission assesses it on the same test used for CIOs and companies, and the process is faster and more predictable.

Selling and Disposing of Charity Land

The June 2023 changes widened the category of advisers whose reports charities must obtain before a disposal, allowing a trustee, officer or employee to provide the required advice if they have the relevant ability and experience. Trustees also gained discretion over how to advertise a proposed disposal, replacing earlier prescriptive requirements.

The March 2024 changes addressed disposals by insolvency practitioners. Liquidators, receivers and administrators handling charity land must now follow a set of defined steps, including verifying that the disposal is in the charity's best interests. The statements and certificates in disposal documents were also updated, and the revised wording applies to all disposals completed on or after 7th March 2024 (except those completing under contracts exchanged before that date). Solicitors advising on commercial property transactions for charities must use the current statement wording in every transaction within the Act's scope.

Three circumstances still require Commission consent: disposal to a connected person, disposal of designated land, and failure to comply with the mandatory requirements of obtaining an adviser's report and being satisfied that the terms are the best obtainable.

Mergers

Sections 33 to 35 addressed a long-standing practical difficulty. When a charity merged and was dissolved, the merged entity could sometimes fail to receive legacies left to the dissolved charity, particularly when the will contained a lapse clause.

The new rules provide that most gifts to a merging charity, upon registration of the merger in the Register of Mergers, take effect as gifts to the merged charity. The benefit for charities considering a merger is that they no longer need to maintain a shell entity purely to capture legacies. That arrangement was administratively burdensome and created ongoing regulatory obligations for an entity with no active purpose. The statutory process for smaller unincorporated charity mergers was also simplified by removing the requirement for a formal scheme, as the new framework makes it unnecessary.

Ex Gratia Payments

Sections 15 and 16 came into force on 27 November 2025. The long delay from the originally anticipated October 2022 start date arose from concerns about statutory museums and galleries, which are subject to separate legislation that prevents the disposal of collection objects. The Department for Culture, Media and Sport reviewed the position, and the final commencement regulations carve out 16 named institutions from the new regime in respect of their collections.

For all other charities, trustees who have no legal power to make a payment but consider themselves under a moral obligation to do so may now self-authorise the payment without Commission consent, provided it does not exceed the limit set by reference to the charity's gross income in its last financial year. A charity with income up to £25,000 may pay up to £1,000; one with income between £25,001 and £250,000 may pay up to £2,500; between £250,001 and £1 million, up to £10,000; and above £1 million, up to £20,000. These limits apply to each individual payment and cannot be avoided by splitting an obligation into smaller amounts.

The test is now objective: trustees must be satisfied that they could reasonably be regarded as being under a moral obligation, not merely that they personally feel obliged. They may delegate the decision to a committee or staff member, though trustees remain responsible for the outcome. Where a payment exceeds the relevant limit, Commission consent is still required, and a refusal is now appealable to the First-tier Tribunal.

Frequently Asked Questions

Does the Act apply to charities in Scotland or Northern Ireland?

No, the Charities Act 2022 applies only to England and Wales. Scotland operates under the Charities and Trustee Investment (Scotland) Act 2005, and Northern Ireland is regulated separately by the Charity Commission for Northern Ireland under the Charities Act (Northern Ireland) 2008.

Can unincorporated charities change their purposes without a Commission scheme?

Yes, but only with Commission consent. Sections 1 to 3 provide a statutory power to propose a purpose change by resolution. However, the change does not take effect until the Commission gives its written authority. The Commission applies the same legal test it uses for charitable companies and CIOs.

Do we still need a surveyor's report to sell charity land?

Not automatically. The June 2023 changes allow a trustee, officer or employee with the relevant ability and experience to provide the required advice on a disposal. For straightforward transactions, an internal appointment may be sufficient. For complex or higher-value disposals, an external professional report remains advisable to demonstrate compliance and protect trustees.

What happens to ex gratia applications submitted before 27 November 2025?

The saving provisions in the Charities Act 2022 (Commencement No. 4 and Saving Provision) Regulations 2025 provide that applications made before 27th November 2025 continue to be processed under section 106 of the Charities Act 2011, as if sections 15 and 16 had not come into force. The new framework does not apply to those applications.

Are any provisions of the 2022 Act still not in force?

As of June 2026, all substantive provisions of the Charities Act 2022 are in force for charities in England and Wales generally, subject only to the partial exclusion for 16 named museum and gallery collections under the ex gratia provisions. If your charity is one of those 16 institutions, specialist advice on the remaining exclusion is worth seeking before taking any action regarding collection objects.

About the Author

Graham Pearce founded Pearcelegal in 1981 after qualifying as a solicitor in 1978 and training at Eversheds. He read Law and History at Keele University and now leads the firm's Conveyancing, Commercial, and Charity departments. His practice focuses on charity law, business law, trusts, probate, and tax planning, advising trustees, owner-managers, and high-net-worth individuals across the West Midlands. Graham is regulated by the Solicitors Regulation Authority (SRA ID 112438).