Part 2: Charity Land Section 22: Residential tenancies granted to employees
Employees of a charity fall within the definition of connected persons for the purposes of section 117(2) of the CA 2011. Disposals of charity land to an employee are therefore prohibited unless they are authorised by the Charity Commission. Section 22 amends section 118 of the CA 2011, (which provides the definition of connected persons for the purposes of section 117(2) of the CA 2011) to create an exception to the prohibition in the case of the grant of a short fixed-term or periodic tenancy to an employee of a charity to use as their home. It will still be necessary to obtain advice on the grant of such a lease, but there will no longer be a requirement for Charity Commission consent.