The Sir Thomas Lipton Charity
Published 14 January 2016
Applies to England and Wales
© Crown copyright 2016
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The charity owns a property in North London that, until August 2014, was used as a care home. The trustee found that keeping the care home open was no longer viable, principally because of the regulatory requirements for registered care homes and market expectations. However, the property is ‘designated’ or ‘specie’ property, being land required to be used for the charity’s purposes.
The commission agreed, on the trustee’s application, to make a scheme to give the trustee power to dispose of the property. Public notice was given of the intention to make the scheme and the commission received representations, which were then reviewed under the commission’s decision review procedures. The reviewer decided that the scheme should be made, but with modification.
The revised purposes still require the charity to hold land. That means that when the property has been disposed of, the trustee must give proper consideration to using the proceeds to provide a replacement property in which to carry out the purposes of the charity. If this would not be feasible (such as if the proceeds of sale were not sufficient to allow this) or would not be an effective use of the property, the trustees will be required to apply for a new cy-près scheme.