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 agreed by
the due date for payment of tax and the association appeared to be
entitled to make a claim 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 part of the
tax which appears to be eligible for grant. There is no basis for
acceding to such a request.
The housing association would prefer not to have to pay the
tax if a reimbursement is expected. However, if it did not pay on
the due date then it would suffer an interest charge in the normal
way. The Housing Corporation may, in certain circumstances have
agreed to pay the CT due in advance of the assessment being issued.
This was a matter for the association to take up with the Housing
Corporation. It is likely, however, that the Housing Corporation
would require some form of evidence before agreeing to release the
funds. Subject to the inspector having sufficient information to
arrive at a figure of the likely minimum amount of tax payable
there was no objection to providing the association with a letter
setting out the facts if this was requested.
Where the association's claim for a grant was successful, the
Secretary of State made payment direct to the Revenue and informed
the association accordingly. Where, following payment by the
Secretary of State, the association's tax liability in respect of
which the grant was paid is reduced, the appropriate repayment of
tax should be made direct to the Housing Corporation.
CTSA applies to housing associations in the normal way.
