# New rules now in effect for conversion of charitable companies into CIOs

- Link: https://fundraising.co.uk/2018/01/03/new-rules-now-effect-conversion-charitable-companies-cios/
- Published: 2018-01-03T08:55:24+00:00
- Author: Melanie May

**New rules have come into force that govern how charitable companies convert into
charitable incorporated organisations (CIOs).**

 

The rules came into effect on 1 January. They allow charitable companies to change
their legal status through a more straightforward process involving an application
to the [Charity Commission](https://www.gov.uk/government/organisations/charity-commission).
Changing to a different charitable structure usually involves setting up a new charity,
transferring the original charity’s assets and liabilities to it then closing the
original charity.

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Under the new rules however, following the change to a CIO, the charity continues
to exist but in a different form, keeping the charity’s existing name and charity
number. Charities should also be able to keep their existing bank accounts and in
most cases, the Charity Commission states that the new CIO should receive any legacies
left to the original charitable company. Its registration with Companies House is
also cancelled and it is no longer governed by company law, with no requirement 
therefore to submit accounts to Companies House.

 

The new process currently applies to charitable companies with a yearly income of
under £12,500, and will become available to larger charities in stages according
to [the timetable on the .gov site](https://www.gov.uk/guidance/legislative-changes-affecting-the-charitable-incorporated-organisation-cio).

 

[Full guidance](https://www.gov.uk/guidance/legislative-changes-affecting-the-charitable-incorporated-organisation-cio)
on the rule changes is available online, and Bates Wells Braithwaite has announced
that it is to hold a [seminar on CIO conversion](https://www.bwbllp.com/events/2018/04/17/conversion-of-charitable-companies-to-charitable-incorporated-organisations)
on 17 April.

 * **[Baroness Stowell to focus on charity behaviour in speech setting out Commission’s new strategy](https://fundraising.co.uk/2018/10/04/baroness-stowell-focus-charity-behaviour-speech-setting-commissions-new-strategy/)**(
   4 October 2018)
 * **[ECNL publishes review of global fundraising self-regulation](https://fundraising.co.uk/2019/11/19/ecnl-publishes-review-of-global-fundraising-self-regulation/)**(
   19 November 2019)
 * **[Charity Commission publishes summaries of Charities Act changes due this autumn](https://fundraising.co.uk/2022/10/17/charity-commission-publishes-summaries-of-charities-act-changes-due-this-autumn/)**(
   17 October 2022)

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