CORPORATION TAX EXEMPTION FOR SOCIAL HOUSING

Motion Text

That this House believes that social housing activities by registered social landlords should not be charged corporation tax at the same rate as commercial companies; also believes that this is not in the interests of improved investment in Britain's housing stock; understands that, while charitable RSLs are exempt from such tax, many offer too broad a range of services to qualify for charitable status; notes that the National Housing Federation estimates the cost of exemption at approximately ú30 million a year and contrasts this figure with the ú300 million cost of reducing the corporation tax rate for commercial companies in 1998-99; further notes that this ú30 million represents a 6 per cent. increase in internally generated funds available for social housing activities; and calls on the Chancellor to boost investment in social housing by considering exempting social housing activities from corporation tax liability.