RPSM10105320 - Technical Pages: Death benefits: Lump sums pre 6 April 2011: Member dies aged 75 or over: What is meant by a charity

What is meant by a charity and how the charity must use the charity lump sum death benefit payment

Definition of a charity

A charity is defined in paragraph 1 FA 2010 (Schedule 6, Part 1).

Although paragraph 1 FA 2010 is not restricted to just registered charities, details are provided below of websites that provide a list of registered charities. Scheme administrators may find these useful in considering whether or not they may make a charity lump sum death benefit payment to a particular body.

Registered charities

All charities registered with the Commission of England & Wales are listed on a Register - this Register can be searched on-line at www.charity-commission.gov.uk. This website also gives information as to the requirements imposed on such charities and how a charity can register.

The Scottish counterpart is the Office of the Scottish Charity Regulator (www.oscr.org.uk).

The Northern Irish counterpart is, from 1 May 2010, the Charity Commission Northern Ireland (www.dsdni.gov.uk/ccni).

If the charity does not use the payment for charitable purposes

If the charity does not use the payment for charitable purposes the payment will not have been a charity lump sum death benefit. It will be treated as an unauthorised member payment (see RPSM04104020, which deals with the taxation of such payments).