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Back to "Community & Associations Newsletter - April 2023"

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New regime for Related-Party Transactions

A related party transaction is defined as a transfer of resources, services, or obligations between related parties.

Related party transactions are permitted but they can give rise to conflicts of interest

The new regime will require all charities to include in their AIS from 1 January 2023, charities that:

  • submit an AIS at the end of the financial year, for any related party transactions occurring between 1 January and 30 June 2023: and
  • submit an AIS at the end of the calendar year for any related party transactions occurring between 1 January 2023 and 31 December 2023.

A practical step to meet the reporting obligation would be to set up a register that records each related party transaction.

Ensure that the charity keeps meticulous records and minutes of all discussions of all related party transactions to assist at reporting time.

Grace Brophy, Lawyer
Josephine Heesh, Partner

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