Charitable companies can now convert into a charitable incorporated organisation (CIO) with relative ease following legislative changes in November last year.
The Charitable Company Conversion scheme will enable a “simple and direct” conversion process for charities with a company structure and Community Interest Companies (CICs) looking to change their legal form into a Charitable Incorporated Organisation (CIO) – a structure enjoyed by more than 12,500 newly created charities across the UK.
Under the new rules, the conversion process has been simplified and can be carried out without the creation of a new legal entity.
The service was launched last month and follows a phased implementation timetable by income bracket, as seen below:
|1 January 2018||Less than £12,500|
|1 March 2018||Between £12,500 and £25,000|
|1 May 2018||Between £25,000 and £100,000|
|1 June 2018||Between £100,000 and £250,000|
|1 July 2018||Between £250,000 and £500,000|
|1 August 2018||Greater than £500,000|
For more information on The Charitable Company Conversion scheme and the legal structures charities have available to them, please get in touch.