The national housing Federation has launched a national campaign to stop the Inland Revenue clawing back cash from registered social landlords with VAT shelters.
It wants to stop them offsetting the cost of repairs to transferred homes against corporation tax (HT 21 November, page 14).

Housing associations are writing to MPs to protest. Up to 40 associations and planned transfers could be affected.

The NHF sent more than 100 model letters for MPs and briefing packs to associations last Thursday.

John McHale, chief executive of Knowsley Housing Trust, wrote to George Howarth, MP for Knowsley North & Sefton East, and Eddie O'Hara, MP for Knowsley South, to highlight the £49m bill it faces under the plans (HT 12 December, page 10).

"It would mean that we would have £49m less to invest in housing stock," said McHale. "We think the issue needs a political solution.

Some associations could face corporation tax bills that outstrip cash raised through VAT shelters.

Others have factored savings from the shelters into their business plans. They will have to scale back regeneration plans or become charitable bodies if the proposals go ahead.

Source

Housing Today