Corporation Tax Act 2010 section 642

Disregard of rent from members and of interest payable

Section 642 allows an approved housing association to claim relief so that rent received from its members is disregarded for tax purposes and interest it pays is treated as not payable for corporation tax purposes.

• An approved housing association may make a claim under this section for any accounting period (or part of one) during which it held approved status.
• Where a valid claim is made, rent the association was entitled to receive from its members for that period is ignored for tax purposes.
• Interest payable by the association for that period is treated as if it were not payable for corporation tax purposes.
• The interest relief does not apply to the extent that the interest relates to property that is not subject to a tenancy.