CTM40410 | Particular bodies: housing associations: summary of tax treatment

The guidance at CTM40400 onwards concerns housing associations, CTM40405, that are ‘registered societies’ in Great Britian, formerly industrial and provident societies, see CTM40505 onwards. They are companies for the purposes of the Taxes Acts and are chargeable to Corporation Tax on their income and chargeable gains, see CG73100 onwards, subject to such relief as is available under

• CTA10/S642 - co-operative housing associations, see CTM40415 to CTM40445.

• Housing Act 1988 S54 (in Northern Ireland, Article 22, Housing (NI) Order 1992 (SI992/1725 (NI15)) tax relief grants CTM40450 – now essentially defunct.

• CTA10/PART11/CHAPTER3 - charitable bodies, see CTM40460.

A housing association can be a company with investment business within CTA10/S1218B, but it will depend on the particular facts in each case, see CTM08040.

As regards management co-operatives, see CTM40465.

As regards self-build societies approved under CTA10/S651, see CTM40470.

Treatment of interest paid

Interest paid is dealt with under the loan relationship provisions. Relief for interest payable is therefore available as a trade or non-trade debit. Excess debits may be carried forward and relieved against trading or non-trading credits in the normal way.

CTSA applies to housing associations in the same way as for any other body corporate.