Clause 5
Charities Bill [Lords]
5:30 pm
Andrew Turner (Shadow Minister (Charities), Home Affairs; Isle of Wight, Conservative)
The hon. Member for Bishop Auckland referred to the clause some moments ago. My worry, which arose before she raised that matter, is that a
“registered sports club established for charitable purposes is to be treated as not being so established, and accordingly cannot be a charity.”
I understand, of course, that, if the club were registered under the Recreational Charities Act 1958, certain provisions would apply to it, but if a club—as is now possible and has been so in the past—becomes a charity by virtue of its sporting activity and then becomes a registered sports club, what is the position of its assets? When an organisation ceases to be a charity, it loses its assets. What will be the consequences of that treatment of a sports club that is a charity, but which then chooses to register under the provision?