Politicians have voted in a new law which will change the way charities are regulated in Jersey.

The changes in law will introduce a public benefit test, as well as a charity register which charities will need to be on, in order to access charitable tax reliefs.

It will also see the creation of a charity commissioner and tribunal. The commissioner will be responsible for determining if an organisation passes the charity test, while the tribunal will hear appeals against the decision of the commissioner.

The new law will also mean that only registered charities will be able to call themselves “charities”.

Currently, the only definition of a charity in Jersey is under the income tax law, which dates back to 1601 and fails to mark the need for public benefit to any “reasonable degree”.

Liz Le Poidevin from the Association of Jersey Charities told the BBC that it welcomed the new law and that it would help better define charities.

Jersey’s chief minister, Senator Ian Gorst, who brought in the law, told a non-profit making organisation which receives funding from the State of Jersey government, Jersey Finance, that the law would help charities flourish.

He said: “I am delighted to see the introduction of a Charities Law for Jersey. It is an initiative that is very timely and important for the future of Jersey.

“A fit-for-purpose, modern law will, first and foremost, support local charities to flourish for the benefit of our whole community. In addition it also paves the way for the introduction of proportionate, common sense regulation, which will increase both consumer and observer confidence and reduce the potential reputational risks in the charities sector for Jersey.”

In 2013 residents of Jersey were asked whether they needed a charities law. Of the respondents, 96 per cent supported the need for a new legal definition of charities, while 95 per cent agreed that only publicly registered charities should be able to make public financial appeals.