The Charity Commission has authorised the permanent donation of Chinese ceramics to the British Museum worth an estimated £1bn.

The Chinese ceramics collection, which consists of about 1,700 pieces, is being donated to the museum on a permanent basis by the Sir Percival David Foundation of Chinese Art.

The foundation’s trustees announced plans to donate the collection permanently in November last year, but the gift was subject to regulatory authority from the Charity Commission, since the transfer was not being explicitly allowed under the charity’s governing document.

The regulator has since provided written authority to change the foundation’s governing document to enable the permanent transfer of the collection, which the commission described as the “most valuable object donation in British museum history”.

The collection, which was assembled by the British businessman Sir Percival David, has been on loan to the British Museum since 2009 in its specially designed bilingual Room 95. 

The collection includes the ‘David vases’ (pictured) from 1351, the discovery of which revolutionised the dating for blue and white ceramics. 

It also includes a ‘Chicken cup’, which was used to serve wine to the Chenghua emperor from 1465 to 1487, and Ru wares made for the northern Song dynasty court in about 1086.

The Sir Percival David Foundation said it was keen to fulfil the wishes of its founder – who collected ceramics from Europe, Japan, Hong Kong and China – by keeping the collection on public view and enabling academic study of the pieces.

The foundation added that transferring the costs of maintaining the collection would also allow the charity to manage its resources more effectively.

Colin Sheaf, chair of the Sir Percival David Foundation of Chinese Art, said: “Sir Percival was motivated by three principal concerns. These were to preserve the whole collection together for posterity, to display it publicly and safely in its entirety, and to ensure that his superb porcelain should not only be admired by connoisseurs for its beauty but should also educate the widest possible audience about China’s historic culture which he greatly admired.

“With the valued support of the Charity Commission, the foundation’s trustees have taken this major decision because they believe that this transfer entirely meets the philanthropic intentions and long-term wishes of the founder almost a century ago.”

Nicholas Cullinan, director of the British Museum, said: “I am humbled by the generosity of the trustees of the Sir Percival David Foundation in permanently entrusting its incomparable private collection to the British Museum and thank the Charity Commission for their support in now approving the transfer.”

He added that the objects “add a special dimension to our own collection and together offer scholars, researchers and visitors around the world the incredible opportunity to study and enjoy the very best examples of Chinese craftsmanship”.

Christine Barker, head of regulatory authority at the Charity Commission, said: “We are pleased to have given authority for this remarkable transfer to go ahead. The foundation’s trustees are clear that ensuring the safe and accessible display of their founder’s collection is fully aligned with their charitable objects.”