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HMRC internal manual

Company Taxation Manual

HM Revenue & Customs
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Particular bodies: housing associations: procedure

For pre-CTSA periods CT assessments on housing associations (CTM40405)are to be made in the normal way. Where the accounts and computations have not been agreedby the due date for payment of tax and the association appeared to be entitled to make aclaim for a tax relief grant under Section 54 of Housing Act 1988 (CTM40450)the association might ask for demands for payment to be withheld in respect of that partof the tax which appears to be eligible for grant. There is no basis for acceding to sucha request.

The housing association would prefer not to have to pay the tax if a reimbursement isexpected. However, if it did not pay on the due date then it would suffer an interestcharge in the normal way. The Housing Corporation may, in certain circumstances haveagreed to pay the CT due in advance of the assessment being issued. This was a matter forthe association to take up with the Housing Corporation. It is likely, however, that theHousing Corporation would require some form of evidence before agreeing to release thefunds. Subject to the inspector having sufficient information to arrive at a figure of thelikely minimum amount of tax payable there was no objection to providing the associationwith a letter setting out the facts if this was requested.

Where the association’s claim for a grant was successful, the Secretary of State madepayment direct to the Revenue and informed the association accordingly. Where, followingpayment by the Secretary of State, the association’s tax liability in respect of which thegrant was paid is reduced, the appropriate repayment of tax should be made direct to theHousing Corporation.

CTSA applies to housing associations in the normal way.