Charities Act 1993 (repealed)

Part VI E+W Charity Accounts, Reports and Returns

Modifications etc. (not altering text)

C1 Pt. VI (ss. 41-48) modified (1.1.1999) by 1998 No. 1, s. 3(3); Archbishops Instrument dated 14.10.1998

Commencement Information

I1 Pt. VI (ss. 41-48) wholly in force at 1.3.1996; Pt. VI (ss. 41-48) not in force at Royal Assent see s. 99(2); Pt. VI (ss. 41-48) in force for certain purposes at 15.10.1995 by S.I. 1995/2695, art. 3 (with art. 4); Pt. VI (ss. 41-48) in force for all other purposes at 1.3.1996 by S.I. 1995/2695, art. 2 (with art. 4)

41 Duty to keep accounting records. E+W

(1) The charity trustees of a charity shall ensure that accounting records are kept in respect of the charity which are sufficient to show and explain all the charity’s transactions, and which are such as to—

(a) disclose at any time, with reasonable accuracy, the financial position of the charity at that time, and

(b) enable the trustees to ensure that, where any statements of accounts are prepared by them under section 42(1) below, those statements of accounts comply with the requirements of regulations under that provision.

(2) The accounting records shall in particular contain—

(a) entries showing from day to day all sums of money received and expended by the charity, and the matters in respect of which the receipt and expenditure takes place; and

(b) a record of the assets and liabilities of the charity.

(3) The charity trustees of a charity shall preserve any accounting records made for the purposes of this section in respect of the charity for at least six years from the end of the financial year of the charity in which they are made.

(4) Where a charity ceases to exist within the period of six years mentioned in subsection (3) above as it applies to any accounting records, the obligation to preserve those records in accordance with that subsection shall continue to be discharged by the last charity trustees of the charity, unless [F1 the Commission consents] in writing to the records being destroyed or otherwise disposed of.

(5) Nothing in this section applies to a charity which is a company.

Textual Amendments

F1 Words in s. 41(4) substituted (27.2.2007) by Charities Act 2006 (c. 50), s. 79(2), Sch. 8 para. 132; S.I. 2007/309, art. 2, Sch.

42 Annual statements of accounts. E+W

(1) The charity trustees of a charity shall (subject to subsection (3) below) prepare in respect of each financial year of the charity a statement of accounts complying with such requirements as to its form and contents as may be prescribed by regulations made by the [F2 Minister] .

(2) Without prejudice to the generality of subsection (1) above, regulations under that subsection may make provision—

(a) for any such statement to be prepared in accordance with such methods and principles as are specified or referred to in the regulations;

(b) as to any information to be provided by way of notes to the accounts;

and regulations under that subsection may also make provision for determining the financial years of a charity for the purposes of this Act and any regulations made under it.

(3) Where a charity’s gross income in any financial year does not exceed [F3 £100,000], the charity trustees may, in respect of that year, elect to prepare the following, namely—

(a) a receipts and payments account, and

(b) a statement of assets and liabilities,

instead of a statement of accounts under subsection (1) above.

(4) The charity trustees of a charity shall preserve—

(a) any statement of accounts prepared by them under subsection (1) above, or

(b) any account and statement prepared by them under subsection (3) above,

for at least six years from the end of the financial year to which any such statement relates or (as the case may be) to which any such account and statement relate.

(5) Subsection (4) of section 41 above shall apply in relation to the preservation of any such statement or account and statement as it applies in relation to the preservation of any accounting records (the references to subsection (3) of that section being read as references to subsection (4) above).

(6) The [F2 Minister] may by order amend subsection (3) above by substituting a different sum for the sum for the time being specified there.

(7) Nothing in this section applies to a charity which is a company.

Textual Amendments

F2 Word in s. 42 substituted (13.12.2006) by Transfer of Functions (Third Sector, Communities and Equality) Order 2006 (S.I. 2006/2951), art. 1(2), Sch. para. 4(q)

F3 Figure in s. 42(3) substituted (1.3.1996) by S.I. 1995/2696, art. 2(3)

43 Annual audit or examination of charity accounts. E+W

[F4 (1) Subsection (2) below applies to a financial year of a charity if—

(a) the charity's gross income in that year exceeds £500,000; or

(b) the charity's gross income in that year exceeds the accounts threshold and at the end of the year the aggregate value of its assets (before deduction of liabilities) exceeds £2.8 million.

“The accounts threshold” means £100,000 or such other sum as is for the time being specified in section 42(3) above.]

(2) If this subsection applies to a financial year of a charity, the accounts of the charity for that year shall be audited by a person who—

[F5 (a) would be eligible for appointment as auditor of the charity under Part 2 of the Companies Act 1989 if the charity were a company, or]

(b) is a member of a body for the time being specified in regulations under section 44 below and is under the rules of that body eligible for appointment as auditor of the charity.

(3) If subsection (2) above does not apply to a financial year of a charity [F6 but its gross income in that year exceeds £10,000,] the accounts of the charity for that year shall, at the election of the charity trustees, either—

(a) be examined by an independent examiner, that is to say an independent person who is reasonably believed by the trustees to have the requisite ability and practical experience to carry out a competent examination of the accounts, or

(b) be audited by such a person as is mentioned in subsection (2) above.

[F7 This is subject to the requirements of subsection (3A) below where the gross income exceeds £250,000, and to any order under subsection (4) below.]

[F8 (3A) If subsection (3) above applies to the accounts of a charity for a year and the charity's gross income in that year exceeds £250,000, a person qualifies as an independent examiner for the purposes of paragraph (a) of that subsection if (and only if) he is an independent person who is—

(a) a member of a body for the time being specified in section 249D(3) of the Companies Act 1985 (reporting accountants);

(b) a member of the Chartered Institute of Public Finance and Accountancy; or

(c) a Fellow of the Association of Charity Independent Examiners.]

(4) Where it appears to [F9 the Commission]—

(a) that subsection (2), or (as the case may be) subsection (3) above, has not been complied with in relation to a financial year of a charity within ten months from the end of that year, or

(b) that, although subsection (2) above does not apply to a financial year of a charity, it would nevertheless be desirable for the accounts of the charity for that year to be audited by such a person as is mentioned in that subsection,

[F9 the Commission] may by order require the accounts of the charity for that year to be audited by such a person as is mentioned in that subsection.

(5) If [F10 the Commission makes] an order under subsection (4) above with respect to a charity, then unless—

(a) the order is made by virtue of paragraph (b) of that subsection, and

(b) the charity trustees themselves appoint an auditor in accordance with the order,

the auditor shall be a person appointed by [F11 the Commission].

(6) The expenses of any audit carried out by an auditor appointed by [F12 the Commission] under subsection (5) above, including the auditor’s remuneration, shall be recoverable by [F12 the Commission]—

(a) from the charity trustees of the charity concerned, who shall be personally liable, jointly and severally, for those expenses; or

(b) to the extent that it appears to [F12 the Commission] not to be practical to seek recovery of those expenses in accordance with paragraph (a) above, from the funds of the charity.

(7) [F13 The Commission] may—

(a) give guidance to charity trustees in connection with the selection of a person for appointment as an independent examiner;

(b) give such directions as [F14 it thinks] appropriate with respect to the carrying out of an examination in pursuance of subsection (3)(a) above;

and any such guidance or directions may either be of general application or apply to a particular charity only.

[F15 (8) The Minister may by order—

(a) amend subsection (1)(a) or (b), (3) or (3A) above by substituting a different sum for any sum for the time being specified there;

(b) amend subsection (3A) by adding or removing a description of person to or from the list in that subsection or by varying any entry for the time being included in that list.]

(9) Nothing in this section applies to a charity which is a company.

[F16 (10) Nothing in this section applies in relation to a financial year of a charity where, at any time in the year, a charity is an English National Health Service charity or Welsh National Health Service charity (as defined in sections 43A and 43B respectively).]

Textual Amendments

F4 S. 43(1) substituted (27.2.2007) by Charities Act 2006 (c. 50), ss. 28(2), 79(2); S.I. 2007/309, art. 2, Sch.

F5 S. 43(2)(a) substituted (27.2.2007) by Charities Act 2006 (c. 50), ss. 28(3), 79(2); S.I. 2007/309, art. 2, Sch.

F6 Words in s. 43(3) substituted (27.2.2007) by Charities Act 2006 (c. 50), ss. 28(4)(a), 79(2); S.I. 2007/309, art. 2, Sch.

F7 Words in s. 43(3) inserted (27.2.2007) by Charities Act 2006 (c. 50), ss. 28(4)(b), 79(2); S.I. 2007/309, art. 2, Sch.

F8 S. 43(3A) inserted (27.2.2007) by Charities Act 2006 (c. 50), ss. 28(5), 79(2); S.I. 2007/309, art. 2, Sch.

F9 Words in s. 43(4) substituted (27.2.2007) by Charities Act 2006 (c. 50), s. 79(2), Sch. 8 para. 134(2); S.I. 2007/309, art. 2, Sch.

F10 Words in s. 43(5) substituted (27.2.2007) by Charities Act 2006 (c. 50), s. 79(2), Sch. 8 para. 134(3)(a); S.I. 2007/309, art. 2, Sch.

F11 Words in s. 43(5) substituted (27.2.2007) by Charities Act 2006 (c. 50), s. 79(2), Sch. 8 para. 134(3)(b); S.I. 2007/309, art. 2, Sch.

F12 Words in s. 43(6) substituted (27.2.2007) by Charities Act 2006 (c. 50), s. 79(2), Sch. 8 para. 134(4); S.I. 2007/309, art. 2, Sch.

F13 Words in s. 43(7) substituted (27.2.2007) by Charities Act 2006 (c. 50), s. 79(2), Sch. 8 para. 134(5)(a); S.I. 2007/309, art. 2, Sch.

F14 Words in s. 43(7) substituted (27.2.2007) by Charities Act 2006 (c. 50), s. 79(2), Sch. 8 para. 134(5)(b); S.I. 2007/309, art. 2, Sch.

F15 S. 43(8) substituted (27.2.2007) by Charities Act 2006 (c. 50), ss. 28(6), 79(2); S.I. 2007/309, art. 2, Sch.

F16 S. 43(10) inserted (E.W.) (with effect in accordance with art. 1(2) of the amending S.I.) by Regulatory Reform (National Health Service Charitable and Non-Charitable Trust Accounts and Audit) Order 2005 (S.I. 2005/1074), arts. 1(2), 3(2)

[F17 43A Annual audit or examination of English National Health Service charity accounts E+W

(1) This section applies in relation to a financial year of a charity where, at any time in the year, the charity is an English National Health Service charity.

(2) In any case where [F18 paragraph (a) or (b) of section 43(1) is satisfied in relation to] a financial year of an English National Health Service charity, the accounts of the charity for that financial year shall be audited by a person appointed by the Audit Commission.

(3) In any other case, the accounts of the charity for that financial year shall, at the election of the Audit Commission, be—

(a) audited by a person appointed by the Audit Commission; or

(b) examined by a person so appointed.

(4) Section 3 of the Audit Commission Act 1998 (c. 18) applies in relation to any appointment under subsection (2) or (3)(a).

(5) [F19 The Commission] may give such directions as [F20 it thinks] appropriate with respect to the carrying out of an examination in pursuance of subsection (3)(b); and any such directions may either be of general application or apply to a particular charity only.

(6) The Comptroller and Auditor General may at any time examine and inspect—

(a) the accounts of the charity for the financial year;

(b) any records relating to those accounts; and

(c) any report of a person appointed under subsection (2) or (3) to audit or examine those accounts.

(7) In this section—

• “Audit Commission” means the Audit Commission for Local Authorities and the National Health Service in England and Wales; and

• “English National Health Service charity” means a charitable trust, the trustees of which are—

  (a)

  a Strategic Health Authority;

  (b)

  a Primary Care Trust;

  (c)

  a National Health Service trust all or most of whose hospitals, establishments and facilities are situated in England;

  (d)

  trustees appointed in pursuance of section 11 of the National Health Service and Community Care Act 1990 (c. 19), or special trustees appointed in pursuance of section 29(1) of the National Health Service Reorganisation Act 1973 (c. 32) and section 95(1) of the National Health Service Act 1977 (c. 49), for a National Health Service trust falling within paragraph (c); or

  (e)

  trustees for a Primary Care Trust appointed in pursuance of section 96B of the National Health Service Act 1977.

Textual Amendments

F17 Ss. 43A, 43B inserted (E.W.) (with effect in accordance with art. 1(2) of the amending S.I.) by Regulatory Reform (National Health Service Charitable and Non-Charitable Trust Accounts and Audit) Order 2005 (S.I. 2005/1074), arts. 1(2), 3(3)

F18 Words in s. 43A(2) substituted (27.2.2007) by Charities Act 2006 (c. 50), s. 79(2), Sch. 8 para. 135(2); S.I. 2007/309, art. 2, Sch. (with art. 7)

F19 Words in s. 43A(5) substituted (27.2.2007) by Charities Act 2006 (c. 50), s. 79(2), Sch. 8 para. 135(3)(a); S.I. 2007/309, art. 2, Sch.

F20 Words in s. 43A(5) substituted (27.2.2007) by Charities Act 2006 (c. 50), s. 79(2), Sch. 8 para. 135(3)(b); S.I. 2007/309, art. 2, Sch.

43B Annual audit or examination of Welsh National Health Service charity accounts E+W

(1) This section applies in relation to a financial year of a charity where, at any time in the year, the charity is a Welsh National Health Service charity.

(2) In any case where [F21 paragraph (a) or (b) of section 43(1) is satisfied in relation to] a financial year of a Welsh National Health Service charity, the accounts of the charity for that financial year shall be audited by the Auditor General for Wales.

(3) In any other case, the accounts of the charity for that financial year shall, at the election of the Auditor General for Wales, be audited or examined by the Auditor General for Wales.

(4) In this section—

• “Welsh National Health Service charity” means a charitable trust, the trustees of which are—

  (a)

  a Local Health Board;

  (b)

  a National Health Service trust all or most of whose hospitals, establishments and facilities are situated in Wales; or

  (c)

  trustees appointed in pursuance of section 11 of the National Health Service and Community Care Act 1990 (c. 19), or special trustees appointed in pursuance of section 29(1) of the National Health Service Reorganisation Act 1973 (c. 32) and section 95(1) of the National Health Service Act 1977 (c. 49), for a National Health Service trust falling within paragraph (b).

[F22 (5) References in this Act to an auditor or an examiner have effect in relation to this section as references to the Auditor General for Wales acting under this section as an auditor or examiner.]]

Textual Amendments

F17 Ss. 43A, 43B inserted (E.W.) (with effect in accordance with art. 1(2) of the amending S.I.) by Regulatory Reform (National Health Service Charitable and Non-Charitable Trust Accounts and Audit) Order 2005 (S.I. 2005/1074), arts. 1(2), 3(3)

F21 Words in s. 43B(2) substituted (27.2.2007) by Charities Act 2006 (c. 50), s. 79(2), Sch. 8 para. 136(2); S.I. 2007/309, art. 2, Sch. (with art. 8)

F22 S. 43B(5) added (27.2.2007) by Charities Act 2006 (c. 50), s. 79(2), Sch. 8 para. 136(3); S.I. 2007/309, art. 2, Sch.

44 Supplementary provisions relating to audits etc. E+W

(1) The [F23 Minister] may by regulations make provision—

(a) specifying one or more bodies for the purposes of section 43(2)(b) above;

(b) with respect to the duties of an auditor carrying out an audit under section 43[F24 , 43A or 43B] above, including provision with respect to the making by him of a report on—

(i) the statement of accounts prepared for the financial year in question under section 42(1) above, or

(ii) the account and statement so prepared under section 42(3) above,

as the case may be;

[F25 (c) with respect to the making of a report—

(i) by an independent examiner in respect of an examination carried out by him under section 43 above; or

(ii) by an examiner in respect of an examination carried out by him under section 43A or 43B above;]

(d) conferring on such an auditor or on an independent examiner [F26 or examiner] a right of access with respect to books, documents and other records (however kept) which relate to the charity concerned;

(e) entitling such an auditor or an independent examiner [F26 or examiner] to require, in the case of a charity, information and explanations from past or present charity trustees or trustees for the charity, or from past or present officers or employees of the charity;

(f) enabling [F27 the Commission], in circumstances specified in the regulations, to dispense with the requirements of section 43(2) or (3) above in the case of a particular charity or in the case of any particular financial year of a charity.

(2) If any person fails to afford an auditor or an independent examiner [F28 or examiner] any facility to which he is entitled by virtue of subsection (1)(d) or (e) above, [F29 the Commission] may by order give—

(a) to that person, or

(b) to the charity trustees for the time being of the charity concerned,

such directions as [F30 the Commission thinks] appropriate for securing that the default is made good.

F31 (3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Textual Amendments

F23 Word in s. 44(1) substituted (13.12.2006) by Transfer of Functions (Third Sector, Communities and Equality) Order 2006 (S.I. 2006/2951), art. 1(2), Sch. para. 4(s)

F24 Words in s. 44(1)(b) inserted (27.2.2007) by Charities Act 2006 (c. 50), s. 79(2), Sch. 8 para. 137(2)(a); S.I. 2007/309, art. 2, Sch.

F25 S. 44(1)(c) substituted (27.2.2007) by Charities Act 2006 (c. 50), s. 79(2), Sch. 8 para. 137(2)(b); S.I. 2007/309, art. 2, Sch.

F26 Words in s. 44(1)(d)(e) inserted (27.2.2007) by Charities Act 2006 (c. 50), s. 79(2), Sch. 8 para. 137(2)(c); S.I. 2007/309, art. 2, Sch.

F27 Words in s. 44(1)(f) substituted (27.2.2007) by Charities Act 2006 (c. 50), s. 79(2), Sch. 8 para. 137(2)(d); S.I. 2007/309, art. 2, Sch.

F28 Words in s. 44(2) inserted (27.2.2007) by Charities Act 2006 (c. 50), s. 79(2), Sch. 8 para. 137(3)(a); S.I. 2007/309, art. 2, Sch.

F29 Words in s. 44(2) substituted (27.2.2007) by Charities Act 2006 (c. 50), s. 79(2), Sch. 8 para. 137(3)(b); S.I. 2007/309, art. 2, Sch.

F30 Words in s. 44(2) substituted (27.2.2007) by Charities Act 2006 (c. 50), s. 79(2), Sch. 8 para. 137(3)(c); S.I. 2007/309, art. 2, Sch.

F31 S. 44(3) repealed (27.2.2007) by Charities Act 2006 (c. 50), s. 79(2), Sch. 8 para. 137(4), Sch. 9; S.I. 2007/309, art. 2, Sch.

45 Annual reports. E+W

(1) The charity trustees of a charity shall prepare in respect of each financial year of the charity an annual report containing—

(a) such a report by the trustees on the activities of the charity during that year, and

(b) such other information relating to the charity or to its trustees or officers,

as may be prescribed by regulations made by the [F32 Minister].

(2) Without prejudice to the generality of subsection (1) above, regulations under that subsection may make provision—

(a) for any such report as is mentioned in paragraph (a) of that subsection to be prepared in accordance with such principles as are specified or referred to in the regulations;

(b) enabling [F33 the Commission] to dispense with any requirement prescribed by virtue of subsection (1)(b) above in the case of a particular charity or a particular class of charities, or in the case of a particular financial year of a charity or of any class of charities.

(3) [F34 Where [F35 a charity's gross income in any financial year] exceeds £10,000, [F36 a copy of] the annual report required to be prepared under this section in respect of that year] shall be transmitted to [F37 the Commission] by the charity trustees—

(a) within ten months from the end of that year, or

(b) within such longer period as [F37 the Commission] may for any special reason allow in the case of that report.

[F38 (3A) Where [F39 a charity's gross income in any financial year does not exceed] £10,000, [F40 a copy of] the annual report required to be prepared under this section in respect of that year shall, if [F41 the Commission so requests, be transmitted to it] by the charity trustees—

(a) in the case of a request made before the end of seven months from the end of the financial year to which the report relates, within ten months from the end of that year, and

(b) in the case of a request not so made, within three months from the date of the request,

or, in either case, within such longer period as [F42 the Commission] may for any special reason allow in the case of that report.]

(4) Subject to subsection (5) below, [F43 any [F44 copy of an annual report transmitted to the Commission] under this section] shall have attached to it [F45 a copy of] the statement of accounts prepared for the financial year in question under section 42(1) above or (as the case may be) [F45 a copy of] the account and statement so prepared under section 42(3) above, together with—

(a) where the accounts of the charity for that year have been audited under section 43[F46 , 43A or 43B] above, a copy of the report made by the auditor on that statement of accounts or (as the case may be) on that account and statement;

(b) where the accounts of the charity for that year have been examined under section 43[F47 , 43A or 43B] above, a copy of the report made by the [F48 person carrying out the examination]

(5) Subsection (4) above does not apply to a charity which is a company, and any [F49 copy of an] annual report transmitted by the charity trustees of such a charity under [F50 this section] shall instead have attached to it a copy of the charity’s annual accounts prepared for the financial year in question under Part VII of the M1 Companies Act 1985, together with a copy of [F51 any auditors’ report or report made for the purposes of section 249A(2) of that Act] on those accounts.

(6) Any [F52 copy of an] annual report transmitted to [F53 the Commission] under [F50 this section], together with the documents attached to it, shall be kept by [F53 the Commission] for such period as [F54 it thinks fit].

[F55 (7) The charity trustees of a charity shall preserve, for at least six years from the end of the financial year to which it relates, any annual report prepared by them under subsection (1) above [F56 of which they have not been required to transmit a copy to the Commission.]

(8) Subsection (4) of section 41 above shall apply in relation to the preservation of any such annual report as it applies in relation to the preservation of any accounting records (the references [F57 to subsection (3)] of that section being read as references to subsection (7) above).

(9) The [F32 Minister] may by order amend subsection (3) or (3A) above by substituting a different sum for the sum for the time being specified there.]

Textual Amendments

F32 Word in s. 45 substituted (13.12.2006) by Transfer of Functions (Third Sector, Communities and Equality) Order 2006 (S.I. 2006/2951), art. 1(2), Sch. para. 4(t)

F33 Words in s. 45(2)(b) substituted (27.2.2007) by Charities Act 2006 (c. 50), s. 79(2), Sch. 8 para. 138(2); S.I. 2007/309, art. 2, Sch. (with art. 9)

F34 Words in s. 45(3) substituted (3.11.1994) by 1994 c. 40, ss. 29(1), 82(3)(b)

F35 Words in s. 45(3) substituted (27.2.2007) by Charities Act 2006 (c. 50), s. 79(2), Sch. 8 para. 138(3)(a); S.I. 2007/309, art. 2, Sch. (with art. 9)

F36 Words in s. 45(3) substituted (27.2.2007) by Charities Act 2006 (c. 50), s. 79(2), Sch. 8 para. 138(3)(b); S.I. 2007/309, art. 2, Sch. (with art. 9)

F37 Words in s. 45(3) substituted (27.2.2007) by Charities Act 2006 (c. 50), s. 79(2), Sch. 8 para. 138(3)(c); S.I. 2007/309, art. 2, Sch. (with art. 9)

F38 S. 45(3A) inserted (3.11.1994) by 1994 c. 40, ss. 29(2), 82(3)(b)

F39 Words in s. 45(3A) repealed (27.2.2007) by Charities Act 2006 (c. 50), s. 79(2), Sch. 8 para. 138(4)(a); S.I. 2007/309, art. 2, Sch. (with art. 9)

F40 Words in s. 45(3A) repealed (27.2.2007) by Charities Act 2006 (c. 50), s. 79(2), Sch. 8 para. 138(4)(b); S.I. 2007/309, art. 2, Sch. (with art. 9)

F41 Words in s. 45(3A) repealed (27.2.2007) by Charities Act 2006 (c. 50), s. 79(2), Sch. 8 para. 138(4)(c); S.I. 2007/309, art. 2, Sch. (with art. 9)

F42 Words in s. 45(3A) repealed (27.2.2007) by Charities Act 2006 (c. 50), s. 79(2), Sch. 8 para. 138(4)(d); S.I. 2007/309, art. 2, Sch. (with art. 9)

F43 Words in s. 45(4) substituted (3.11.1994) by 1994 c. 40, ss. 29(3), 82(3)(b)

F44 Words in s. 45(4) substituted (27.2.2007) by Charities Act 2006 (c. 50), s. 79(2), Sch. 8 para. 138(5)(a); S.I. 2007/309, art. 2, Sch. (with art. 9)

F45 Words in s. 45(4) inserted (27.2.2007) by Charities Act 2006 (c. 50), s. 79(2), Sch. 8 para. 138(5)(b); S.I. 2007/309, art. 2, Sch. (with art. 9)

F46 Words in s. 45(4)(a) inserted (with effect in accordance with art. 1(2) of the amending S.I.) by Regulatory Reform (National Health Service Charitable and Non-Charitable Trust Accounts and Audit) Order 2005 (S.I. 2005/1074), arts. 1(2), 3(4)(a)

F47 Words in s. 45(4)(b) inserted (with effect in accordance with art. 1(2) of the amending S.I.) by Regulatory Reform (National Health Service Charitable and Non-Charitable Trust Accounts and Audit) Order 2005 (S.I. 2005/1074), arts. 1(2), 3(4)(a)

F48 Words in s. 45(4)(b) substituted (with effect in accordance with art. 1(2) of the amending S.I.) by Regulatory Reform (National Health Service Charitable and Non-Charitable Trust Accounts and Audit) Order 2005 (S.I. 2005/1074), arts. 1(2), 3(4)(b)

F49 Words in s. 45(5) inserted (27.2.2007) by Charities Act 2006 (c. 50), s. 79(2), Sch. 8 para. 138(6); S.I. 2007/309, art. 2, Sch. (with art. 9)

F50 Words in s. 45(5)(6) substituted (3.11.1994) by 1994 c. 40, ss. 29(4)(5), 82(3)(b)

F51 Words in s. 45(5) substituted (11.8.1994) by S.I. 1994/1935 reg. 4, Sch. 1 Pt. II para. 6

F52 Words in s. 45(6) inserted (27.2.2007) by Charities Act 2006 (c. 50), s. 79(2), Sch. 8 para. 138(7)(a); S.I. 2007/309, art. 2, Sch. (with art. 9)

F53 Words in s. 45(6) substituted (27.2.2007) by Charities Act 2006 (c. 50), s. 79(2), Sch. 8 para. 138(7)(b); S.I. 2007/309, art. 2, Sch. (with art. 9)

F54 Words in s. 45(6) substituted (27.2.2007) by Charities Act 2006 (c. 50), s. 79(2), Sch. 8 para. 138(7)(c); S.I. 2007/309, art. 2, Sch. (with art. 9)

F55 S. 45(7)-(9) inserted (3.11.1994) by 1994 c. 40, ss. 29(6), 82(3)(b)

F56 Words in s. 45(7) substituted (27.2.2007) by Charities Act 2006 (c. 50), s. 79(2), Sch. 8 para. 138(8); S.I. 2007/309, art. 2, Sch. (with art. 9)

F57 Words in s. 45(8) substituted (27.2.2007) by Charities Act 2006 (c. 50), s. 79(2), Sch. 8 para. 138(9); S.I. 2007/309, art. 2, Sch. (with art. 9)

Marginal Citations

M1 1985 c. 6.

46 Special provision as respects accounts and annual reports of exempt and other excepted charities. E+W

(1) Nothing in sections 41 to 45 above applies to any exempt charity; but the charity trustees of an exempt charity shall keep proper books of account with respect to the affairs of the charity, and if not required by or under the authority of any other Act to prepare periodical statements of account shall prepare consecutive statements of account consisting on each occasion of an income and expenditure account relating to a period of not more than fifteen months and a balance sheet relating to the end of that period.

(2) The books of accounts and statements of account relating to an exempt charity shall be preserved for a period of six years at least unless the charity ceases to exist and [F58 the Commission consents] in writing to their being destroyed or otherwise disposed of.

(3) Nothing in [F59 section 43, 44 or 45] above applies to any charity which—

(a) falls within section 3(5)(c) above, and

(b) is not registered.

(4) Except in accordance with subsection (7) below, nothing in section 45 above applies to any charity (other than an exempt charity or a charity which falls within section 3(5)(c) above) which—

(a) is excepted by section 3(5) above, and

(b) is not registered.

(5) If requested to do so by [F60 the Commission], the charity trustees of any such charity as is mentioned in subsection (4) above shall prepare an annual report in respect of such financial year of the charity as is specified in [F61 the Commission's request].

(6) Any report prepared under subsection (5) above shall contain—

(a) such a report by the charity trustees on the activities of the charity during the year in question, and

(b) such other information relating to the charity or to its trustees or officers,

as may be prescribed by regulations made under section 45(1) above in relation to annual reports prepared under that provision.

(7) Subsections (3) to (6) of section 45 [F62 (as originally enacted)] above shall apply to any report required to be prepared under subsection (5) above as if it were an annual report required to be prepared under subsection (1) of that section.

(8) Any reference in this section to a charity which falls within section 3(5)(c) above includes a reference to a charity which falls within that provision but is also excepted from registration by section 3(5)(b) above.

Textual Amendments

F58 Words in s. 46(2) substituted (27.2.2007) by Charities Act 2006 (c. 50), s. 79(2), Sch. 8 para. 139(2); S.I. 2007/309, art. 2, Sch.

F59 Words in s. 46(3) substituted (with effect in accordance with art. 1(2) of the amending S.I.) by Regulatory Reform (National Health Service Charitable and Non-Charitable Trust Accounts and Audit) Order 2005 (S.I. 2005/1074), arts. 1(2), 3(5)

F60 Words in s. 46(5) substituted (27.2.2007) by Charities Act 2006 (c. 50), s. 79(2), Sch. 8 para. 139(5)(a); S.I. 2007/309, art. 2, Sch.

F61 Words in s. 46(5) substituted (27.2.2007) by Charities Act 2006 (c. 50), s. 79(2), Sch. 8 para. 139(5)(b); S.I. 2007/309, art. 2, Sch.

F62 Words in s. 46(7) inserted (3.11.1994) by 1994 c. 40, ss. 29(7), 82(3)(b)

47 Public inspection of annual reports etc. E+W

(1) [F63 Any document kept by the Commission] in pursuance of section 45(6) above shall be open to public inspection at all reasonable times—

(a) during the period for which it is so kept; or

(b) if [F64 the Commission so determines], during such lesser period as [F65 it may] specify.

(2) Where any person—

(a) requests the charity trustees of a charity in writing to provide him with a copy of the charity’s most recent accounts [F66 or (if subsection (4) below applies) of its most recent annual report], and

(b) pays them such reasonable fee (if any) as they may require in respect of the costs of complying with the request,

those trustees shall comply with the request within the period of two months beginning with the date on which it is made.

(3) In subsection (2) above the reference to a charity’s most recent accounts is—

F67 (a) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(b) in the case of [F68 a charity other than one falling within paragraph (c) or (d) below], a reference to the statement of accounts or account and statement prepared in pursuance of section 42(1) or (3) above in respect of the last financial year of the charity in respect of which a statement of accounts or account and statement has or have been so prepared;

[F69 (c) in the case of a charity which is a company, a reference to the most recent annual accounts of the company prepared under Part VII of the Companies Act 1985 in relation to which any of the following conditions is satisfied—

(i) they have been audited

(ii) a report required for the purposes of section 249A(2) of that Act has been made in respect of them; or

(iii) they relate to a year in respect of which the company is exempt from audit by virtue of section 249A(1) of that Act; and]

(d) in the case of an exempt charity, a reference to the accounts of the charity most recently audited in pursuance of any statutory or other requirement or, if its accounts are not required to be audited, the accounts most recently prepared in respect of the charity.

[F70 (4) This subsection applies if an annual report has been prepared in respect of any financial year of a charity in pursuance of section 45(1) or 46(5) above.

(5) In subsection (2) above the reference to a charity's most recent annual report is a reference to the annual report prepared in pursuance of section 45(1) or 46(5) in respect of the last financial year of the charity in respect of which an annual report has been so prepared.]

Textual Amendments

F63 Words in s. 47(1) substituted (27.2.2007) by Charities Act 2006 (c. 50), s. 79(2), Sch. 8 para. 140(2)(a); S.I. 2007/309, art. 2, Sch.

F64 Words in s. 47(1) substituted (27.2.2007) by Charities Act 2006 (c. 50), s. 79(2), Sch. 8 para. 140(2)(b); S.I. 2007/309, art. 2, Sch.

F65 Words in s. 47(1) substituted (27.2.2007) by Charities Act 2006 (c. 50), s. 79(2), Sch. 8 para. 140(2)(c); S.I. 2007/309, art. 2, Sch.

F66 Words in s. 47(2)(a) inserted (27.2.2007) by Charities Act 2006 (c. 50), s. 79(2), Sch. 8 para. 140(3); S.I. 2007/309, art. 2, Sch.

F67 S. 47(3)(a) repealed (3.11.1994) by 1994 c. 40, ss. 39, 81, 82(3)(b), Sch. 11, para. 12(a), Sch. 17

F68 Words in s. 47(3)(b) substituted (3.11.1994) by ss. 39, 82(3)(b), Sch. 11 para. 12(b)

F69 S. 47(3)(c) substituted (11.8.1994) by S.I. 1994/1935, reg. 4, Sch. 1 Pt. II para. 7

F70 S. 47(4)(5) added (27.2.2007) by Charities Act 2006 (c. 50), s. 79(2), Sch. 8 para. 140(4); S.I. 2007/309, art. 2, Sch.

48 Annual returns by registered charities. E+W

(1) [F71 Subject to subsection (1A) below,] Every registered charity shall prepare in respect of each of its financial years an annual return in such form, and containing such information, as may be prescribed by regulations made by [F72 the Commission].

[F73 (1A) Subsection (1) above shall not apply in relation to any financial year of a charity in which [F74 the charity's gross income does not exceed] £10,000.]

(2) Any such return shall be transmitted to [F75 the Commission] by the date by which the charity trustees are, by virtue of section 45(3) above, required to transmit [F76 to the Commission] the annual report required to be prepared in respect of the financial year in question.

(3) [F77 The Commission] may dispense with the requirements of subsection (1) above in the case of a particular charity or a particular class of charities, or in the case of a particular financial year of a charity or of any class of charities.

[F78 (4) The [F79 Minister] may by order amend subsection (1A) above by substituting a different sum for the sum for the time being specified there.]

Textual Amendments

F71 Words in s. 48(1) inserted (3.11.1994) by 1994 c. 40, ss. 30(2), 82(3)(b)

F72 Words in s. 48(1) substituted (27.2.2007) by Charities Act 2006 (c. 50), s. 79(2), Sch. 8 para. 141(2); S.I. 2007/309, art. 2, Sch.

F73 S. 48(1A) inserted (3.11.1994) by 1994 c. 40, ss. 30(3), 82(3)(b)

F74 Words in s. 48(1A) substituted (27.2.2007) by Charities Act 2006 (c. 50), s. 79(2), Sch. 8 para. 141(3); S.I. 2007/309, art. 2, Sch. (with art. 10)

F75 Words in s. 48(2) substituted (27.2.2007) by Charities Act 2006 (c. 50), s. 79(2), Sch. 8 para. 141(4)(a); S.I. 2007/309, art. 2, Sch.

F76 Words in s. 48(2) substituted (27.2.2007) by Charities Act 2006 (c. 50), s. 79(2), Sch. 8 para. 141(4)(b); S.I. 2007/309, art. 2, Sch.

F77 Words in s. 48(3) substituted (27.2.2007) by Charities Act 2006 (c. 50), s. 79(2), Sch. 8 para. 141(5); S.I. 2007/309, art. 2, Sch.

F78 S. 48(4) inserted (3.11.1994) by 1994 c. 40, ss. 30(4), 82(3)(b)

F79 Word in s. 48(4) substituted (13.12.2006) by Transfer of Functions (Third Sector, Communities and Equality) Order 2006 (S.I. 2006/2951), art. 1(2), Sch. para. 4(u)

[F80 49 Offences E+W

(1) If any requirement imposed—

(a) by section 45(3) or (3A) above (taken with section 45(3B), (4) and (5), as applicable), or

(b) by section 47(2) or 48(2) above,

is not complied with, each person who immediately before the date for compliance specified in the section in question was a charity trustee of the charity shall be guilty of an offence and liable on summary conviction to the penalty mentioned in subsection (2).

(2) The penalty is—

(a) a fine not exceeding level 4 on the standard scale, and

(b) for continued contravention, a daily default fine not exceeding 10% of level 4 on the standard scale for so long as the person in question remains a charity trustee of the charity.

(3) It is a defence for a person charged with an offence under subsection (1) to prove that he took all reasonable steps for securing that the requirement in question would be complied with in time.]

Textual Amendments

F80 S. 49 substituted (27.2.2007) by Charities Act 2006 (c. 50), s. 79(2), Sch. 8 para. 142; S.I. 2007/309, art. 2, Sch. (with art. 11)