The National Housing Federation has warned the Inland Revenue against setting a threshold for the percentage of a mixed-tenure site that can get relief from stamp duty land tax.
At present, charitable housing associations cannot get the relief on social housing plots if the sites also include property for sale.

The Inland Revenue said last week it would introduce "partial relief" so the social housing element of a mixed development would be exempt from the tax (HT 7 May, page 14). However, it did not explain how it will introduce the change.

The NHF fears the Revenue could set a low threshold so a site could only get partial stamp duty relief if the housing for sale made up less than a certain percentage of the site – perhaps as little as 10%.

A threshold would be OK for the wider charity world but would be restrictive for RSLs

Bob Wilson, NHF finance policy officer

NHF finance policy officer Bob Wilson said: "We think the minister has in mind the bigger charity world rather than RSL charities within it.

Source

Housing Today