The Trustees present their annual report and financial statements for the year ended 31 March 2026.
The financial statements have been prepared in accordance with the accounting policies set out in note 1 to the financial statements and comply with the Trust's governing document, the Companies Act 2006 and "Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102)" (effective 1 January 2019).
The Trust Deed, dated April 1979, allows the Trustees to provide housing for the retired. The Trustees are empowered to provide and maintain homes upon such terms as they agree are fitting and in consideration of the leases. The Trust’s properties can be purchased on a leasehold basis at a price determined by an independent surveyor or with a discount calculated using the potential purchasers age and life expectancy (the discount scheme).
As a housing provider for the over 55s (over 60s at Hailsham and Lower Willingdon), we are committed to meeting the growing needs and altering demands of our ‘niche’ market. We aim to accommodate the requirements of our discerning applicants that join our waiting lists and work to achieve high levels of satisfaction with the housing we provide.
One of our discount lease bungalows in Lower Willingdon was vacated in June 2025, was subsequently refurbished and added to our rental portfolio, the first at that site. We also purchased a one-bedroom bungalow in Uckfield that had been on the market for several months - this allowed the sale to be completed for our former resident's family and enabled us to offer a further rental, which was soon occupied, taking the number of rentals to nine. We will continue to review our own housing stock as properties become available, whilst assessing the needs of those on our waiting lists. We offer our rental properties at a 'less than market' rent, based on local authority housing allowances. Our aim is to regularly monitor the need for rental properties, based on our waiting lists and increase that part of our portfolio as funds allow.
We have continued with works recommended in the maintenance plan provided by a firm of Chartered Surveyors in 2022. Major roof works have taken place at our site at The Meads to address faulty materials which has resulted in considerable expenditure.
We also had to deal with drainage problems caused by a broken underground drain at our Baker Court site. A local firm was able to excavate and lay a new section of drain to solve the issue, ensuring that the residents weren't adversely affected.
Several new boilers had to be installed this year, providing a more efficient and economic heat and water source for those residents.
We refurbished the bathroom by removing the bath and installing a walk-in shower for one of residents who was unable to use the bath due to health and mobility issues.
We are registered for the next solar panel scheme with a view to installing panels at 6 bungalows at our Willingdon site which will benefit the residents for their own electricity supply.
As properties return to us we are continuing our programme of refurbishment, with particular attention being paid to the updating of bathrooms and kitchens.
We continue to look for any suitable development opportunities to build/convert new homes.
The Trustees have had regard to the Charity Commission’s guidance on public benefit and are aware that it is their duty to administer the charity to further its purposes. They are aware that the Public Benefit must be identifiable and proven. They are also aware that whilst our charity does benefit individuals of a particular section of the public our beneficiaries are deemed to be a sufficient section of the public.
We provide access to contractors and our office staff when maintenance/adaptation issues occur.
Each property is provided with a ‘lifeline’ system, providing 24hr access to care and emergency services. Some residents choose not to access this. They are able to review this option at any time during their tenure.
We are a ‘niche’ provider but fulfil a need in a market where ‘retirement’ housing and associated services are being offered at huge costs by the larger retirement housing companies.
The Thomas Scanlan Trust is a charity and a limited company. We provide affordable housing for the over 55s (over 60s at Hailsham and Lower Willingdon) across 4 locations in East Sussex. Our aim is to provide worry free living.
This report is to be viewed in collaboration with our prepared accounts for the year to 31st March 2026.
The Trust’s Treasurer in liaison with the Trustees and Accountant monitor the level of reserves held by the Trust.
The Reserves Policy of the charity outlines the monies that the Trustees would wish to have in reserve for the charity to be able to expand without financial constraints. The Trustees continue to monitor these reserves and to build on them for future developments and/or to pursue their aim to provide rental properties.
Future reserves can be accumulated from the sale of properties on the death of residents. Those sold using our Discount Scheme, automatically revert to the Trust for re-sale.
Reserves for each of the Service Charge Accounts are accrued in separate accounts for each site and used towards items of annual expenditure.
The Discount Property Settlement Reserve Fund is currently £400,000
The Emergency Reserve Fund is set at £100,000
Reserve funds are held in separate accounts with seven financial institutions in order to mitigate the risk of losing funds due to financial collapse.
As properties become vacant consideration is given to whether properties should be sold or used as rental properties, depending on demand from our waiting lists.
It is the policy of the Trust that unrestricted funds which have not been designated for a specific use should be maintained at a level equivalent to between three and six month’s expenditure. The Trustees consider that reserves at this level will ensure that, in the event of a significant drop in funding, they will be able to continue the Trust’s current activities while consideration is given to ways in which additional funds may be raised. This level of reserves has been maintained throughout the year.
Risk review
All major decisions are taken following consultation with all Trustees and where necessary with the participation of professionals.
Trustees meet approximately every two months, where bank balances and financial matters are reviewed and discussed along with the running of the Trust. The Trustees are able to meet via video conferencing if and when necessary. In this past year we have been able to hold meetings in person with the flexibility of Trustees joining by Zoom when appropriate.
Prior to each meeting Trustees are provided with a summary of the movements in the bank accounts and balances.
The General Manager is able to consult with Trustees on a daily basis when necessary. Policies are in place regarding the verification of invoices and payments, and we have a weekly system in place for the approval of invoices by email which is sent to all the Trustees. The Treasurer and Chairman have access to the online banking. Spot checking of invoices is regularly carried out at the office by one Trustee, agreed at each meeting.
Matters requiring consultation are posted or e-mailed to Trustees and decisions made according to the majority. We have commissioned the setting up of a secure ‘email’ to share pertinent information with the Trustees.
All Trustees are involved/consulted at regular meetings regarding the movement and use of funds. The Treasurer is able to consult with the Trust’s Accountant and bankers whenever necessary.
All financial transactions require two signatures. Policies regarding the use of cheques and procedures for making on line payments are detailed in the Trust’s Policies File.
The Trust’s Risk map is reviewed by a subcommittee of Trustees annually with reference to the Charity Governance Code. The review is then submitted at a meeting of all Trustees and matters requiring attention are then dealt with.
We hold a Related Parties Register, updated annually. Trustees are required to declare any personal interest relating to any agenda item prior to each meeting.
In the coming year the Trust would like to continue to focus on its rental portfolio, funds permitting, in addition with continuing to update and modernise our properties as they become vacant and funds dictate. We will consider any request from current residents to help with the cost of updating bathroom, kitchen, garden and fencing improvements.
We are recognising the need to adapt to the changing landscape of retirement and the requirements of existing and future customers. To this end we will continue to prioritise our existing properties and our rental portfolio in the coming year.
Our governing documents are the Trust Deed, formulated as a result of the last will and testament of the late Thomas Arthur Scanlan in which he left the bulk of his estate “to be used in creating a Trust for the purpose of erecting homes for the benefit of retired people”
Following the incorporation of the Trust on 15th December 2014 the Trust is now also governed by Company Law and its Memorandum and Articles of association.
The Trustees, who are also the directors for the purpose of company law, and who served during the year and up to the date of signature of the financial statements were:
Trustees/Directors come to the Trust via personal recommendation or application. Such persons are invited to attend a meeting of the Trustees and are then guided through what is required of them by one other Trustee. They are provided with information from the Charity Commission as to their role and duties. Following attendance at a meeting and subsequent Q and A, individuals deemed suitable are asked, in writing, to join the board. Following this a formal Deed of Appointment is prepared by the Trust’s accountant and all necessary ‘legal’ checks undertaken. We have now produced a Trustee Induction pack which provides guidance on the role and has links to websites and online training courses to support new Trustees.
Specific Trustee roles are agreed at the AGM, where all officers and Trustees re-affirm their willingness to continue on the board.
The Trustees are always on the lookout for suitable Trustees/ Directors and are mindful of the skills and diversity required.
None of the Trustees has any beneficial interest in the company. All of the Trustees are members of the company and guarantee to contribute £1 in the event of a winding up.
The day to day running of the Trust is undertaken by the General Manager; in her absence there are two part time administration assistants. In April one of our part time assistants resigned, and we employed a replacement in May.
The General Manager has delegated powers to deal with the running of the office and the Trusts business with access to the Trustees at all times. Policies are in place and adhered to as well as a guide detailing the daily needs of the office.
All staff are monthly paid, the payroll being managed by the Trust’s accountant. Salary/hourly rates are reviewed in February each year, with any amendments effective 1st April. Any staff eligible for pension benefits are enrolled unless they decline membership.
The Trustee's report was approved by the Board of Trustees.
I report to the Trustees on my examination of the financial statements of The Thomas Scanlan Trust (the Trust) for the year ended 31 March 2026.
Having satisfied myself that the financial statements of the Trust are not required to be audited under Part 16 of the Companies Act 2006 and are eligible for independent examination, I report in respect of my examination of the Trust’s financial statements carried out under section 145 of the Charities Act 2011. In carrying out my examination I have followed the Directions given by the Charity Commission under section 145(5)(b) of the Charities Act 2011.
I have completed my examination. I confirm that no matters have come to my attention in connection with the examination giving me cause to believe that in any material respect:
accounting records were not kept in respect of the Trust as required by section 386 of the Companies Act 2006.
the financial statements do not accord with those records; or
the financial statements do not comply with the accounting requirements of section 396 of the Companies Act 2006 other than any requirement that the financial statements give a true and fair view, which is not a matter considered as part of an independent examination; or
the financial statements have not been prepared in accordance with the methods and principles of the Statement of Recommended Practice for accounting and reporting by charities applicable to charities preparing their financial statements in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102).
I have no concerns and have come across no other matters in connection with the examination to which attention should be drawn in this report in order to enable a proper understanding of the financial statements to be reached.
The statement of financial activities includes all gains and losses recognised in the year. All income and expenditure derive from continuing activities.
The Thomas Scanlan Trust is a private company limited by guarantee incorporated in England and Wales. The registered office is 19 Church Street, Uckfield, East Sussex, TN22 1BJ, England.
The financial statements have been prepared in accordance with the Trust's governing document, the Companies Act 2006, FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the Charities SORP "Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102)" (effective 1 January 2019). The Trust is a Public Benefit Entity as defined by FRS 102.
The financial statements are prepared in sterling, which is the functional currency of the Trust. Monetary amounts in these financial statements are rounded to the nearest £.
The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.
At the time of approving the financial statements, the Trustees have a reasonable expectation that the Trust has adequate resources to continue in operational existence for the foreseeable future. Thus the Trustees continue to adopt the going concern basis of accounting in preparing the financial statements.
Unrestricted funds are available for use at the discretion of the Trustees in furtherance of their charitable objectives.
Restricted funds are subject to specific conditions by donors or grantors as to how they may be used. The purposes and uses of the restricted funds are set out in the notes to the financial statements.
Income is derived from 3 main sources; grants of 125 year leases, grants of a life interest lease or rental of property.
Where a life interest lease is granted, the income is spread over the remaining life expectancy of the purchaser. In previous years, the original amount received was spread over the remaining life expectancy. The life expectancy is based on the Life Tables released by the Office of National Statistics. When the estimates are revised, this change in life expectancy is applied prospectively to the income deferral calculations.
Where a 125 year lease is granted, the income is recognised in the year of grant. The trust is also entitled to 5% of the proceeds of any subsequent lease assigned by the original tenant and this income is also recognised in the year of assignment.
Where a property is rented, income is recognised on an accruals basis.
Expenditure is recognised once there is a legal or constructive obligation to transfer economic benefit to a third party, it is probable that a transfer of economic benefits will be required in settlement, and the amount of the obligation can be measured reliably.
Costs are included within the Trust's accounts relate either to the direct provision of residential accommodation or to the support and governance costs associated with the trust's activities.
Included within activities undertaken, directly are general expenses and the costs of subsidising the running of the estates which the Trust owns. The main costs within this section relate to the provision for possible settlement of life interest leases if the resident dies or leaves within 10 years of signing the lease. This is covered in more detail in the provisions note below.
Support costs include office and staff costs relating to overseeing the trust's activities.
Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.
Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in the statement of financial activities.
Investment property, which is property held to earn rentals and/or for capital appreciation, is initially recognised at cost, which includes the purchase cost and any directly attributable expenditure. Subsequently it is measured at fair value at the reporting end date. The surplus or deficit on revaluation is recognised in profit or loss.
At each reporting end date, the Trust reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any).
Cash and cash equivalents include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.
The Trust has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the Trust's balance sheet when the Trust becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.
Basic financial liabilities, including creditors and bank loans are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.
Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of operations from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.
Financial liabilities are derecognised when the Trust’s contractual obligations expire or are discharged or cancelled.
The amount recognised as a provision is the best estimate of the consideration required to settle the present obligation at the reporting end date, taking into account the risks and uncertainties surrounding the obligation. Where the effect of the time value of money is material, the amount expected to be required to settle the obligation is recognised at present value. When a provision is measured at present value, the unwinding of the discount is recognised as a finance cost in net income/(expenditure) in the period in which it arises.
The Trust offers a 'Money Back Guarantee' on the life interest leases. The conditions of the guarantee have changed for leases entered into during the current and subsequent years. Existing leases entered into in previous years still have the old conditions attached to them.
Previously, the conditions were that if the tenant dies or leaves within the first 10 years of the grant of the lease, then an amount is paid back to the tenant (or executors) based on the original amount paid which reduces on a straight line basis over the 10 years. This has now been changed so that is an applicant has more than 5 years, but less than 10 years life expectancy, the amount paid back reduces on a straight line basis over 5 years. Applicants with less than 5 years life expectancy will not receive any amount back. Applicants with more than 10 years will have the same conditions as in previous years.
For existing leases, if at the end of the financial year the life expectancy of a tenant with a life interest lease granted less than 10 years ago is less than 10 years, a provision is calculated to reflect the payment that is anticipated following the death of the tenant within the following 10 years. For new leases, as the tenant's life expectancy will be greater than the term the guarantee payback period runs over, no provision will be recognised.
For existing leases, if at the end of the financial year the life expectancy of a tenant with a life interest lease granted less than 10 years ago is greater than 10 years, a contingent liability is disclosed to reflect the payment that would be required if the tenant were to die within the initial 10 years period. For new leases, all amounts potentially due under the guarantee will be disclosed as a contingent liability.
The provision and contingencies included are updated at each year end to account for the changes in probabilities on the life expectancies of the residents.
The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.
Termination benefits are recognised immediately as an expense when the Trust is demonstrably committed to terminate the employment of an employee or to provide termination benefits.
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
In the application of the Trust’s accounting policies, the Trustees are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.
Charitable activities are split between designated and unrestricted funds. The designated funds relate specifically to the depreciation of tangible fixed assets, which are included within the support costs of the charity. In the year ended 31 March 2026 depreciation was £10,995 (2025: £10,966).
None of the Trustees (or any persons connected with them) received any remuneration or benefits from the Trust during the year, except for 3 trustees who were reimbursed a total of £66 for travel expenses (2025 - 3 were reimbursed £110 for travel expenses).
The average monthly number of employees during the year was:
The Thomas Scanlan Trust receives contributions from the connected services charge accounts to help pay for the wages and salaries within the Trust. In the current year, the connected service charge accounts contributed £24,478 (2025 - £23,046). The balance within the Trust is the net value that the trust has had to pay towards the wages and salary costs and represents the true cost to the Trust.
The charity is exempt from taxation on its activities because all its income is applied for charitable purposes.
The buildings and other assets owned by the trust are necessary for its day to day charitable activities. For this reason, the assets have been ring-fenced into a separate designated fund to show that these monies are not realisable without having an impact on the trust's activities.
Investment property comprises the full open market value of properties leased to residents under a life interest lease or under a rental agreement, and the value of the reversionary interest of properties leased to residents under 125 year leases. The fair value of the investment property as at 31 March 2026 has been arrived at on the basis of a valuation carried out in February 2026 by Appleby Petfield Chartered Surveyors, who are not connected with the Trust. The valuation was made on an open market value basis by reference to market evidence of transaction prices for similar properties.
Deferred income relates to the amounts received for the grant of life interest leases by the Trust As the lease term is for the length of a resident's life, income is spread over the life expectancy of the resident at the year end date. 1 year's worth of income out of the total life expectancy is released to the SoFA in the financial year, with the balance relating to the life expectancy after the year end included in deferred income.
The Trust operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the Trust in an independently administered fund.
The charge to the Statement of Financial Activities in respect of defined contribution schemes was £884 (2025: £803).
These are unrestricted funds which are material to the Trust's activities.
The designated fund represents the net book vbalue of the Trust's fixed assets, which have been set aside in a separate fund to demonstrate the true "free" unrestricted funds of the Trust. The Trust's fixed assets are considered to be integral to its activities, and the sale or disposal of these to provide funds for day to day running is not preferred as this will limit the amount of housing that can be provided.
Transfers take place to ensure the value of the designated fund equals the book value of fixed assets at the year end.
The unrestricted funds of the charity comprise the unexpended balances of donations and grants which are not subject to specific conditions by donors and grantors as to how they may be used. These include designated funds which have been set aside out of unrestricted funds by the trustees for specific purposes.
Under the 'old' Money Back Guarantee conditions, if the life expectancy of a tenant on a discounted lease is less than 10 years at the year end and is within the first 10 years of the lease, a provision is calculated to reflect the payment that is anticipated if the resident dies within the first 10 years. If the life expectancy of the tenant is more than 10 years at the year end and is within the first 10 years of the lease, a contingent liability is included to recognise the amounts that would potentially fall due if the tenant were to die within the first 10 years.
Under the ’new' conditions, the life expectancy of a tenant will be greater than the term of the guarantee and so a contingent liability will be disclosed for potential amounts due for all life interest leases.
At 31 March 2026, the total contingent liability is calculated to be £390,151 (2025: £506,003).
There were no disclosable related party transactions during the year (2025 - none).
The Trust had no material debt during the year.