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Home / Simons-Taxes /Business tax /Part B5A Charities and CASCs /Division B5.8 Charities /The meaning of 'charity' / B5.806 The 'public benefit' test for charities
Commentary

B5.806 The 'public benefit' test for charities

Business tax

The definition of 'charitable purpose' in the Charities Act 2011, s 2 (see B5.806) makes it clear that a purpose can only be a charitable purpose if it is for the public benefit1.

What constitutes a public benefit is not specified in the Act. Instead, the Charity Commission is charged with determining whether the public benefit requirement is satisfied in relation to any such purpose2.

Public benefit guidance is available on the Charity Commission website at Public benefit: an overview and Legal analysis: public benefit.

The guidance was substantially revised in September 2013 following the decision in Independent Schools Council3 (see below).

What the courts have regarded as being for the public benefit has changed over time, as society's needs and circumstances have changed. As the Charity Commission guidance makes clear, the regulator will keep its guidance under review as the law in this area develops.

Case law on the public benefit test

It was well established in the Courts that a purpose, to be charitable, must be of

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