Updated guidance for charity trustees on affordable home ownership and tax

(Immediate Release - 14 May 2009)

Guidance is being published today to help registered social landlords (RSLs) and charity trustees who provide charitable shared ownership housing. The guidance is an update to existing information on affordable home ownership and issues relating to charitable status and tax. It is being published in response to the concerns of many RSLs regarding the impact of the economic downturn on their ability to attract beneficiaries for their shared ownership developments.

The practical guidance has been produced jointly by the Charity Commission, Her Majesty’s Revenue and Customs (HMRC) and the Homes and Communities Agency. It uses a range of scenarios to explain how RSLs can ensure that their provision of access to low cost home ownership complies with charity law by furthering a charitable purpose. The guidance has also been updated to explain the options available to those charitable RSLs who have shared ownership housing developments where, because of a major change in circumstances, the properties can no longer be used for their original purposes.

Rosie Chapman, Executive Director of Policy and Effectiveness at the Charity Commission, said:

“Research carried out by the Charity Commission earlier in the year tells us that the financial downturn is affecting charities in a variety of ways. It seems that for some registered social landlords the effect of the downturn on the housing market is having a negative impact on their work. This updated guidance will help charitable registered social landlords who find themselves in this situation, and it provides practical advice on possible options open to them.”

Keith Moore, Head of HMRC Charities, said:

“We are happy to work with the Charity Commission to provide up-to-date guidance to help the sector through a period of uncertainty.  The updated guidance recognises the scale of the changes in circumstances that have affected registered social landlords since the original guidance was issued.”

The guidance also provides clear, up-to-date advice on other issues, including the new requirement to report on public benefit, providing housing for key workers, the tax implications of providing affordable housing and providing rented housing as a charitable activity.

A copy of the guidance Affordable Home Ownership – Charitable Status and Tax, is available on our website.

End.

Notes to Editors

1. The Charity Commission is the independent regulator for charities in England and Wales. See www.charitycommission.gov.uk for further information or call our contact centre on 0845 300 0218.
2. The Homes and Communities Agency is the single, national housing and regeneration agency for England.  Its role is to create opportunity for people to live in high quality, sustainable places. It provides funding for affordable housing, brings land back into productive use and improves quality of life by raising standards for the physical and social environment.
3. The HCA brings together English Partnerships, investment functions of the Housing Corporation, and the Academy for Sustainable Communities, with major delivery programmes of Communities and Local Government.

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