Trusts (Capital and Income) Act 2013

Thursday 14th March 2013 Written Statements

[The Parliamentary Under-Secretary of State for Justice (Mrs Helen Grant)]

The Trusts (Capital and Income) Act 2013 (c.1) received Royal Assent on 31 January. The Act provides that the provisions of sections 1 to 4 (inclusive) of the Act are to be brought into force on such date as the Secretary of State may by order made by statutory instrument appoint. The remaining provisions of the Act are already in force.

I am pleased to announce that a commencement order is to be made bringing sections 1 to 3 (inclusive), which deal with the apportionment and classification of capital and income in trusts, in to force on 1 October 2013.

In relation to the provisions of section 4 of the Act, the commencement order will bring the new section 104B of the Charities Act 2011 in to force on 6 April 2013. This section empowers the Charity Commission to make regulations relating to total return investment by charities.

The remaining provisions of section 4 relate to the new section 104A of the Charities Act 2011. Section 104A specifies when charities may adopt total return investment. I will make a further announcement about the commencement of these provisions in due course following the completion of the proposed consultation by the Charity Commission on the content of the regulations to be made under section 104B. The Charity Commission expects to issue a consultation paper in the relatively near future.