CTM40430 - Particular bodies: housing associations: co- operatives: action to be taken in offices

ICTA88/S486 (2) provides that any share or loan interest paid by a registered industrial and provident society shall be paid in full, except where the interest is payable to a person whose usual place of abode is outside the UK.

However, for periods from 6 April 1983 to 5 April 2000 a co-operative housing association ( CTM40415) was within the MIRAS Scheme (see RE519). It would, therefore, for those periods normally take up a MIRAS mortgage.

As an industrial and provident society, any other interest will be paid in full.

An association which claims under ICTA88/S488 and supplies the information required on Form 75 (which includes details of all interest paid, whether in full or under deduction of tax) should not also be required to render separate returns of interest paid under ICTA88/S486 (6). Stocks of form 75 can be obtained from CT&VAT (Technical), 100 Parliament Street, London, SW1A 2BQ (telephone - 020 7147 2542).

First year of claim

On the first occasion on which a housing association wishes to make a claim under ICTA88/S488, you should issue Form 75, which requires the association to submit:

• a copy of the rules, a copy of the relevant authority’s letter of approval ( CTM40425),

and

• a copy of the accounts.

A duplicate form may be issued for retention by the association.

For the period up to 5 April 2000 you may have received notification from 'HMRC SPS, Bootle' confirming the approval and the fact that the co-operative housing association had a mortgage within MIRAS. If not, details of any MIRAS mortgage should be obtained from the association. If, exceptionally, the housing association's mortgage was not within MIRAS during this period you should obtain details of the lender, amount of mortgage, number of dwellings and a list of tenants/members. In these circumstances the individual members would be entitled to claim tax relief for mortgage interest paid on their dwelling by the housing association against their income and the relevant Offices would need to be informed.

Subsequent years

Form 75 should be issued each year on, or shortly after, 6 April. In February of each year Offices should review their stock of this form, which should be kept in a numbered establishment file (form 133K), and order sufficient to maintain enough for two years. The forms are also used for claims under ICTA88/S489 (see CTM40470).