Gift aid loop closure could trip landlords
Housing associations will be caught out by the government's crackdown on tax avoidance through gift aid now that the Finance Bill has become law.
The bill, given royal assent last week, introduced measures designed to prevent organisations abusing tax breaks offered through using gift aid to move money around group structures.
Ian Davis, head of RSL governance and charities at Trowers & Hamlins, warned that some associations would be exposed under the new rules. ‘If people do not do anything some of their current arrangements will
be caught,' he said. ‘The upshot is that registered social landlords are going to have to look quite hard at their current structures to see whether the current gift aid payments that are being made in the group will fall
foul of these rules.'
The Treasury had rejected pleas for further exemptions for housing associations, he added, after intense
lobbying secured exceptions for certain group structures (Inside Housing, 12 May).