Corporation Tax Act 2010 section 647

Claims under section 642 or 643

Section 647 sets out the time limits and conditions that must be met before a co-operative housing association can claim the tax reliefs available under sections 642 (disregard of rent and interest) and 643 (exemption for gains on property sales).

• Claims must be made within two years after the end of the accounting period to which they relate, whether the claim covers the whole period or only part of it.
• A claim can only be made if the association's properties were let exclusively to its own members and only members occupied those properties during the relevant period, or the association reasonably considers there was substantial compliance with these requirements.
• The association must also have satisfied the three tests (A to C) relating to its structure and operations, and any covenants required in tenancy agreements must have been observed.
• Where a member dies and another person occupies the property under the member's will or intestacy rules, that occupation during the first six months after death does not count as a breach of the members-only occupancy requirement.