Topical Tax Issues For RSLs

Trudi Amy helps clarify the 'grey areas' created by the new draft guidelines for affordable housing. She also advises housing associations to undertake a review of all intra group transactions.

Low-Cost Home Ownership – Joint Guidance

New draft guidelines were issued jointly by the Housing Corporation, the Charity Commission and HM Revenue & Customs (HMRC) in September 2007 on 'Affordable Home Ownership and Taxation Liability'.

These guidelines are a welcome attempt to clarify the position of charitable housing associations that provide low cost home ownership, in particular to key workers, through mixed developments and regeneration schemes. Certain criteria need to be fulfilled if sales under such schemes are to be categorised as 'charitable activities' and thus be exempt from tax.