Policy Commentary

Release Date
April 10, 1992

Reference Number
CPC-004

Subject
Charitable purposes - Providing housing to the aged under a life-tenancy agreement - Whether relief of the aged

life-tenancy agreement:  a contractual arrangement whereby a person obtains an interest in real property in which the tenant has a freehold interest for life (or for the life of another.)

Purpose
To clarify the Directorate's policy regarding organizations established to provide housing to the aged.

Commentary
Life-tenancy agreements are not unique to the aged nor do they in themselves resolve problems associated with old age. They are merely a particular form of quid pro quo and do not imply any charitable relief. Therefore, an organization established simply to provide housing to the aged under a life-tenancy agreement cannot be registered as a charity.

• Joseph Rowntree Memorial Trust Housing Association Ltd and others v. Attorney-General, [1983] 1 All E.R. 288 (Ch.D.).