The G15 met after one of its members, Genesis Housing Group, became liable for a large portion of the £2m bill facing housing associations as a result of legal guidance that came into effect on 2 December.
The guidance requires housing associations to pay backdated stamp duty before processing tenancies.
Much duty remains unpaid as the law that required it had been largely forgotten. As a result, bills can run to thousands of pounds.
Donald Hoodless, chief executive of RSL Circle 33, said: "[The G15] is not going to take any legal action as it is very risky and not usually very effective. We will be writing to the ODPM to urge them to consider the issue so it can be resolved as quickly as possible."
The National Housing Federation is strongly recommending that one of its members brings a case against the Inland Revenue to argue a point about which tenancies fall under the stamp duty law. It had been thought that Genesis might bring such an action, but a spokesman confirmed the association was unlikely to do so. It has not, however, been ruled out.
This leaves the NHF with the option of lobbying for a change to the next Finance Bill to address the problem. It hopes a campaign, strongly backed by its members, to "exempt housing associations retrospectively from stamp duty payments" would mean changes in the next Bill – due in 2003 or 2004.
The draft paper on stamp duty issued last week could potentially provide a solution as the section on exemptions has yet to be finalised.
Source
Housing Today
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