What’s all the fuss about? asks Stephen Claus
Section 1 of the Charities Act 2006 (ChaA 2006) introduces for the first time a statutory definition of charity. In s 2(1)(b) we find that for purpose to be classified as a charitable purpose it must also be for the public benefit. ChaA 2006, s 3 goes on to prescribe the public benefit test. Here we find that for a purpose to be within the meaning of charitable purpose it must be for the public benefit.
THE OLD LAW
Before ChaA 2006 (the classification is extended from four to 13 heads when enacted) there were four heads of charity as set out in the judgment of Lord Macnaghten in Income Tax Special Comrs v Pemsel [1891] AC 531. They are: the relief of poverty; the advancement of religion; the advancement of education; and other purposes beneficial to the community.
In respect of the first three heads of charity there is a rebuttable presumption that the public benefit
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