NHS (Charitable 
Trusts Etc) Act 2016
CHAPTER 10
Explanatory Notes have been produced to assist in the
understanding of this Act and are available separately
£. 600NHS (Charitable Trusts Etc) Act 2016
CHAPTER 10
CONTENTS
Removal of powers to appoint trustees
1 Removal of Secretary of State’s powers to appoint trustees
2 Section 1: supplementary provision
Great Ormond Street Hospital for Children
3 Transfer of right to royalties re lating to the play “Peter Pan”
General
4E x t e n t
5C o m m e n c e m e n t
6 Short title
Schedule 1 — Section 1: consequential amendments
Schedule 2 — Section 3: supplementary provisionsELIZABETH II c. 10
NHS (Charitable Trusts Etc) Act 2016
2016 CHAPTER 10
An Act to make provision for, and in  connection with, the removal of the
Secretary of State’s powers under th e National Health Service Act 2006 to
appoint trustees; to make provision transferring to Great Ormond Street
Hospital Children’s Charity the right to  a royalty conferre d by Schedule 6 to
the Copyright, Designs and Patents Act 1988; and for conn ected purposes.
[23rd March 2016]
E IT ENACTED  by the Queen’s most Excellent Majesty, by and with the advice and
consent of the Lords Spiritual and Te mporal, and Commons, in this present
Parliament assembled, and by the authority of the same, as follows:— 
Removal of powers to appoint trustees
1 Removal of Secretary of State’s powers to appoint trustees
(1) In the National Health Service Act 2 006 (“the 2006 Act”) omit the following
provisions—
(a) section 51 (foundation trus ts: trust funds and trustees),
(b) section 212 (special trustees fo r a university hospital or teaching
hospital),
( c ) p a r a g r a p h  1 1  o f  S c h e d u l e  A 1  ( t h e  N a t i o n a l  H e a l t h  S e r v i c e
Commissioning Board: tr ust funds and trustees) and the italic heading
before that paragraph,
(d) paragraph 15 of Schedule 1A (clinical commissioning groups: trust
funds and trustees) and the italic heading before that paragraph, and
(e) paragraph 9 of Schedule 6 (Special Health Authorities: trust funds and
trustees).
(2) The Secretary of State may by regula tions made by statutory instrument make
such provision as the Secretary of State considers appropriate in consequence
of subsection (1).BNHS (Charitable Trusts Etc) Act 2016 (c. 10) 2
(3) The provision that may be made by regulations under subsection (2)
includes—
(a) different provision for different purposes,
(b) transitional, transito ry or saving provision,
(c) incidental or supplementary provision, and
(d) provision amending, repealing or revoking any primary or subordinate
legislation.
(4) Subject to subsection (5 ), a statutory instrument containing regulations under
subsection (2) is subject to annulment in pursuance of a resolution of either
House of Parliament.
(5) Subsection (4) does not apply to a statutory instrument falling within
subsection (6).
(6) A statutory instrument containing regulations under subsection (2) which
amend or repeal primary le gislation (whether alone or with other provision)
may not be made unless a draft of the instrument has been laid before, andapproved by a resolution of , each House of Parliament.
(7) In subsection (3)(d) the reference to subordinate legislation includes
subordinate legislation made after the passing of this Act.
(8) In this section—
“primary legislation” means—
(a) an Act of Parliament, or
(b) a Measure or Act of the Na tional Assembly for Wales, and
“subordinate legislation” means—
(a) subordinate legislation within the meaning of the Interpretation
Act 1978, and
(b) subordinate legislation made under a Measure or Act of the
National Assembly for Wales.
(9) Schedule 1 makes consequential amendments.
2 Section 1: supplementary provision
(1) The Secretary of Stat e may by regulations made  by statutory instrument
provide for—
(a) the transfer of trust property held by trustees for an NHS foundation
trust appointed under section 51 of the National Health Service Act2006 (“the 2006 Act”) from the truste es to the NHS foundation trust, and
(b) the transfer of trust property held by trustees for an NHS trust
appointed under paragraph 10 of Schedule 4 to the 2006 Act from thetrustees to the NHS trust.
(2) Any discretion given by a trust in strument to the trustees mentioned in
subsection (1) is exercisable by the person to whom the trust property is
transferred by virtue of that subsection  and, subject to subsections (3) and (4),
the transfer does not affect the trusts  on which the trust property is held.
(3) Subsection (4) applies where the trustees  mentioned in subsection (1) held any
part of the trust property transferred by  v i r t u e  o f  t h a t  s u bsection on trust
wholly or mainly for hospitals for whic h they were appointed for all or any
purposes relating to—NHS (Charitable Trusts Etc) Act 2016 (c. 10) 3
(a) hospital services (inc luding research), or 
(b) any other part of the health service associated with hospitals.
(4) The person to whom the trust property is transferred has a discretion to apply
the part of the trust proper ty in question or the inco me arising from it, to such
extent as that person considers appropriate, for any purposes relating to thehealth service.
(5) Subsections (2) to (7) of section 21 7 of the 2006 Act (trusts: supplementary
provisions) apply as if subsection (1 ) above were a provision to which that
section applies.
(6) In their application by virtue of subsecti on (5), subsections (6 ) and (7) of section
217 of the 2006 Act are to be read as if references to an order were references toregulations.
(7) Regulations under su bsection (1) may make—
(a) different provision for different purposes,
(b) transitional, transitory or saving provision, and
(c) incidental, supplementary or consequential provision.
(8) A statutory instrument containing regu lations under subsection (1) is subject
to annulment in pursuance of a resolu tion of either House of Parliament.
(9) In this section “the health service” and “hospital” have the same meaning as in
the 2006 Act.
Great Ormond Street Hospital for Children
3 Transfer of right to royalties re lating to the play “Peter Pan”
(1) The Copyright, Designs and Patents Act 1988 is amended as set out in
subsections (2) to (11).
(2) In the following headings for “the Hosp ital for Sick Children” substitute “Great
Ormond Street Hospital for Children”—
(a) the heading of section 301, and
(b) the italic heading before section 301.
(3) In section 301 (which provides for Sche dule 6 to have effect) for the words from
“trustees” to “London,” su bstitute “GOSH Children’s Charity for the benefit of
Great Ormond Street Hospital for Children”.
(4) In section 304(2) (extent) omit paragraph (b).
(5) In the heading of Schedule 6 (provision s for the benefit of Great Ormond Street
Hospital for Children) for “the Hospital  for Sick Children” substitute “Great
Ormond Street Hospital for Children”.
(6) Schedule 6 is amended as follows.(7) In paragraph 1(1) (interpretation)—
(a) in the appropriate place insert—
““GOSH Children’s Charity” means Great Ormond Street
Hospital Children’s Charity (company registrationnumber 9338724);”,NHS (Charitable Trusts Etc) Act 2016 (c. 10) 4
(b) in the definition of “the Hospital” for “The Hospital for Sick Children,
Great Ormond Street, London” su bstitute “Great Ormond Street
Hospital for Children”, and
(c) omit the definition of “the trustees”.
(8) In paragraph 2 (entitlement to royalty)—
(a) in sub-paragraph (1) for “The trustees” are” substitute “GOSH
Children’s Char ity is”, and
(b) in sub-paragraph (2) for “the trust ees are” substitute  “GOSH Children’s
Charity is”.
(9) In paragraph 3(a) (exceptions) for “t rustees as copyright owners” substitute
“copyright owner at that time”.
(10) For paragraph 6 (requirement as to how sums received are held) and the italic
heading before it substitute—
“Sums received to be held for the benefit of the Hospital
6 T h e  s u m s  r e c e i v e d  b y  G O S H  C h i l dren’s Charity by virtue of this
Schedule, after deduction of any relevant expenses, are to be held byit for the purposes of the Hospital.”
(11) In paragraph 7 (restrictions in  relation to right to royalty)—
(a) in sub-paragraph (1)—
( i ) f o r  “ t h e  t r u s t e e s ” ,  i n  t h e  first place, substitute “GOSH
Children’s Charity”, and
(ii) for “the trustees purport” substitute “GOSH Children’s Charity
purports”,
(b) in sub-paragraph (2) omit the words from “may” to “and”, and
(c) omit sub-paragraph (3).
(12) Schedule 2 makes supplementary provision.
General
4E x t e n t
(1) Sections 1 and 2 and Schedule 1 extend to England and Wales only.
(2) The remaining provisions of this Ac t extend to England and Wales, Scotland
and Northern Ireland.
5 Commencement 
(1) Sections 1 and 2 and Schedule 1 come into force on a day appointed in
regulations made by the Secretary of State by statutory instrument.
(2) Regulations under subsection (1) may—
(a) appoint different days  for different purposes,
(b) make transitional, transitor y or saving provision, and
(c) make incidental, supplementary or consequential provision.
(3) Section 3 and Schedule 2 come into forc e at the end of the period of two months
beginning with the day on which this Act is passed.NHS (Charitable Trusts Etc) Act 2016 (c. 10) 5
(4) Section 4, this section and section 6 come into force on the day on which this
Act is passed.
6 Short title
This Act may be cited as the NHS (Charitable Trusts Etc) Act 2016.NHS (Charitable Trusts Etc) Act 2016 (c. 10)
Schedule 1 — Section 1: consequential amendments6
SCHEDULES
SCHEDULE 1 Section 1
SECTION  1: CONSEQUENTIAL  AMENDMENTS
National Health Serv ice Act 2006 (c. 41)
1 The National Health Service Act 2006 is amended as follows.
2 In section 213 (transfers of trust property)—
(a) in subsection (2)—
(i) in paragraph (b) at the beginning insert “Welsh”, and
(ii) in paragraph (c) omit “the Board or a clinical commissioning
group,” and “or an NHS foundation trust”, and
(b) in subsection (5) for ““special tr ustees” includes” substitute ““Welsh
special trustees” means”.
3 In section 214 (transfer of functions and property to and from special
trustees)—
(a) in the heading of the section after “from” insert “Welsh”,
(b) in subsections (1) to (3) for “special trustees”, in each place, substitute
“Welsh special trustees”,
(c) in subsection (3)(a) omit “the Board or a clinical commissioning
group,” and “or an NHS foundation trust”, and
(d) in subsection (6) for ““Special tr ustees” includes” su bstitute ““Welsh
special trustees” means”.
4 In section 215 (trustees and property under section 222)—
(a) omit subsections (1) and (2),
(b) in subsection (3)— 
(i) omit paragraphs (za), (zb) and (c) (and the “or” before
paragraph (c)), and
(ii) in paragraph (b) omit “paragraph 10 of Schedule 4, or”, and
(c) in subsection (4) omit the following—
(i) “Board, clinical commissioning group,” in both places, and
(ii) “or NHS foundation trust” in both places.
5 In section 217 (trusts: supplementary provisions) in subsection (1)—
(a) omit paragraphs (a), (ea) and (eb), 
(b) in paragraph (b) for “212 to” substitute “213 and”, and
(c) in paragraph (i) for “paragraphs 8 and 9” substitute “paragraph 8”.
6 In section 218 (private trusts for hospitals)—
(a) in subsection (4)—
(i) in paragraph (a) after “where” insert “Welsh”, andNHS (Charitable Trusts Etc) Act 2016 (c. 10)
Schedule 1 — Section 1: consequential amendments7
(ii) in paragraph (b) omit “a n NHS foundation trust”, and
(b) in subsection (6) in the definition  of “special trustees” for ““special
trustees” includes” substitute ““ Welsh special trustees” means”.
7 In section 220 (trust property previously held for general hospital purposes)
omit subsection (6).
8 In section 226 (financial duties of Spec ial Health Authorit ies) in subsection
(4)(a) omit the words from “or on” to the end.
9 In section 276 (index of defined expressions) omit the entry relating to
special trustees.
10 In Schedule 15 (accounts an d audit) omit paragraph 1(1)(f).
National Health Service (Wales) Act 2006 (c. 42)
11 The National Health Service (Wales) Act 2006 is amended as follows.
12 In section 161 (transfers of trust property)—
(a) in subsection (2)(c) omit—
(i) the words from “the National” to “group,”, and
(ii) “or an NHS foundation trust”, and
(b) omit subsection (5).
13 In section 162 (transfer of functions and property to or from special
trustees)—
(a) in subsection (3)(a) omit—
(i) the words from “the National” to “group”, and
(ii) “or an NHS foundation trust”, and
(b) omit subsection (6).
14 In section 163 (trustees and property under section 169) in subsection (3)
omit the words from “, or  paragraph” to the end.
Charities Act 2011 (c. 25)
15 In section 149(7) of the Charities Act 2011 (meaning of “English NHS
charity”) omit paragraphs (bc) and (bd).
Health and Social Care Act 2012 (c. 7)
16 In the Health and Social Care Act 2012—
(a) in Schedule 4 (amendments of the National Health Service Act 2006)
omit paragraphs 109(a), 110(3)(a), 111(3)(a) and 113(a), and
(b) in Schedule 21 (amendments relating to relationships between the
health services) omit para graphs 34(a) and 35(3)(a).
Local Audit and Accountability Act 2014 (c. 2)
17 The Local Audit and Accountability  Act 2014 is amended as follows.
18 Omit the following (which relate to special trustees for hospitals in
England)—
(a) section 3(9)(b),
(b) section 4(5),NHS (Charitable Trusts Etc) Act 2016 (c. 10)
Schedule 1 — Section 1: consequential amendments8
(c) section 8(4)(c),
(d) section 10(10)(c), 
(e) section 21(3),
(f) “and trustees of NHS tr usts” in section 43(6)(b),
(g) the definition of “special truste es for a hospital” in section 44(1),
(h) “and trustees for NHS trusts” in section 47 (and its heading),
(i) paragraph 24 of Schedule 2 (and the note to that paragraph), and
(j) paragraph 4(8)(c) of Schedule 7.
19 (1) Schedule 13 (transitory and saving pr ovisions in relation to NHS trusts) is
amended as follows.
(2) Omit the following—
(a) “and Trustees for NHS trusts” in the heading,
(b) paragraph 1(2)(b) (and the “and” before it),
(c) paragraph 2(2)(b), and
(d) paragraph 3(1)(b) (and the “and” before it).
(3) In paragraph 3(2) omit the paragraph 24B notionally inserted into Schedule
2.
(4) In paragraph 4 omit the paragraph (d) notionally inserted into section 3(9).(5) In paragraph 5(1), in the subsection (6) notionally inserted into section 4,
omit “, or the trustees for an NHS trust”.
(6) In paragraph 6 omit the paragraph (e) notionally inserted into section 8(4).
(7) In paragraph 7 omit the paragraph (e) notionally inserted into section 10(10).(8) In paragraph 8(1) omit the words from “, or the trustees” to the end.
(9) In paragraph 9—
(a) in sub-paragraph (1) omit “, or the trustees for an NHS trust fail,”,
(b) in that sub-paragraph omit “or (as the case may be) the trustees”,
(c) in sub-paragraph (2) omit “, or th e trustees for an NHS trust have,”,
and
(d) in sub-paragraphs (4) to (7) om it “or trustees” in each place.
(10) For paragraph 10 substitute—
“10 Section 21 is to be read as if it contained the following subsection—
“(2A) In auditing the accounts of a health service body other
than a clinical commissioning group, a local auditormust, by examination of the accounts and otherwise, besatisfied—
(a) that the accounts present a true and fair view,
and comply with the requirements of the
enactments that apply to them,
(b) that proper practices have been observed in the
preparation of the accounts, and
(c) that the body has made proper arrangements for
securing economy, efficiency and effectivenessin its use of resources.””NHS (Charitable Trusts Etc) Act 2016 (c. 10)
Schedule 1 — Section 1: consequential amendments9
(11) In paragraph 11 omit paragrap h (b) (and the “or” before it).
(12) In paragraph 12—
(a) in sub-paragraph (2), in the paragraph (ca) notionally inserted into
paragraph 2(3) of Schedule 7, omit “or the trustees for an NHS trust”,
(b) in sub-paragraph (3), in the paragraph (ca) notionally inserted into
paragraph 3(2) of Schedule 7, omit “or the trustees for an NHS trust”,and
(c) in sub-paragraph (4) omit the para graph (e) notionally inserted into
paragraph 4(8) of Schedule 7.
(13) In paragraph 13(1), in  the paragraph (c) notiona lly inserted into section
30(2), omit “or the trustees for an NHS trust”.
SCHEDULE 2
Section 3
SECTION  3: SUPPLEMENTARY  PROVISIONS
General interpretation
1 In this Schedule—
“GOSH Children’s Charity” means Great Ormond Street Hospital
Children’s Charity (c ompany registration number 9338724);
“the Hospital” means Great Ormond  Street Hospital for Children;
“relevant charity merger” has the meaning given by section 306 of the
Charities Act 2011;
“the transfer date” means the date on which section 3 and this Schedule
come into force;
“transferor” and “transferee” have the meaning given by section 306 of
the Charities Act 2011;
“the trustees” means the special tr ustees appointed for the Hospital
under the National Health Service Act 1977 or the National Health
Service Act 2006;
“the 1988 Act” means the Copyrigh t, Designs and Patents Act 1988.
Transfer to GOSH Children’s Ch arity: transitional provisions
2 (1) Sub-paragraph (2) applies where im mediately before the transfer date—
(a) the trustees were entitled to a royalty by virtue of paragraph 2 of
Schedule 6 to the 1988 Act, but
(b) the royalty or another form of remuneration agreed  by the trustees
(or part of it) has not been paid to the trustees.
(2) The royalty or other form of remunera tion (or part of it) is payable to GOSH
Children’s Charity on and after the transfer date and is to be held by it forthe purposes of the Hospital.
3 Where a royalty or other form of remuneration (or part of it) is payable to
GOSH Children’s Charity by virtue of paragraph 2 it may agree another
form of remuneration.
4 (1) Sub-paragraph (2) applies where immediately before the transfer date the
trustees were entitled to a royalty or other remuneration by virtue ofNHS (Charitable Trusts Etc) Act 2016 (c. 10)
Schedule 2 — Section 3: supplementary provisions10
paragraph 2 of Schedule 6 to the 1988  Act (whether or not the royalty or
remuneration (or part of it) has been paid).
(2) Paragraph 5 of that Schedule applies on and after the transfer date as if
GOSH Children’s Charity had been the tr ustees before the transfer date (and
any application or order or other thing made or done before the transfer date
has effect accordingly).
Transfer on merger of GOSH Children’s Charity
5 (1) This paragraph applies where GOSH Ch ildren’s Charity is the transferor (or
one of the transferors) in a relevant charity merger.
(2) The Secretary of State may by regulations made by statutory instrument—
(a) amend paragraph 2 of Schedule 6 to the 1988 Act to transfer the right
to a royalty by virtue of that para graph to the transferee in relation
to the merger, and
(b) make consequential amendments of the 1988 Act.
6 Regulations under paragraph 5 may make—
(a) transitional, transitory or saving provision, and
(b) incidental or supplementary provision.
7 A statutory instrument containing regulations under paragraph 5 may not
be made unless a draft of the instrument has been laid before, and approved
by a resolution of, each  House of Parliament.
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