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Planning Advisory Service (PAS)
Ouvert | En cours - juillet 2012 | Dernière modification - May

Setting up Charitable Trust for collection of Commuted Sums

Former Member, modifié il y a 13 années.

Setting up Charitable Trust for collection of Commuted Sums

The National Park Authority are considering creating a Charitable Trust to hold commuted sums received as a result of s106 negoations for affordable housing. The idea is to create some control over the spending of commuted sums within the park boundary. Currently commuted sums go to the respective Unitary Authority Housing Departments within our boundary. (The NPA is the Local Planning Authority but not the housing authority - we have 7 Unitary Authorities within our boundary). Historically it has been difficult to track the receipt and spending of this money. We are seeking to ensure that the amount negotiated is directly related to delivery within the park. Does anybody have experience of creating a charitable trust for this purpose? Are there issues with the amount of time that the trust may be able to hold the moneys. I note the discussions on this forum about the usual 5 year clawback clause. We are particularly concerned that the trust may need to collect 3 or 4 contributions before the amount required to deliver a single dwelling is acheived. Timescales may dictate that moneys have to be repaid before the amount is collected. Any advice appreciated.
Former Member, modifié il y a 13 années.

Re: Setting up Charitable Trust for collection of Commuted Sums

I am a consultant and have not heard of any such scheme being used although contributions to voluntary sector training programmes is not unknown. But I would have though that there are other snags. Circular 05/2005 implies that unless the commuted sum is sought for expenditure directly related to the contributing development, longer term costs "should normally be borne by the body or authority in which the asset is to be vested". So the five year point might be a bit academic. Note that the use of s106 is now quite restricted anyway and CIL doesn't say anything about commuted sums. Michael Beaman
Former Member, modifié il y a 12 années.

Re: Setting up Charitable Trust for collection of Commuted Sums

What was the solution here? If there was one.