Corporation Tax Act 2010 section 651

Disregard of rent from members

Section 651 provides that an approved self-build society can claim to have rent received from its members disregarded for corporation tax purposes.

• An approved self-build society may claim to exclude rent from members from its taxable income for any accounting period during which it held approved status.
• The definition of "rent" is broad and includes any amounts the society is entitled to receive in respect of the occupation of any of its land.
• Occupation of the society's land includes occupation under a licence, not just formal tenancy arrangements.
• The claim operates on an accounting period basis, aligning the treatment of rental income with the chargeable gains exemption available to self-build societies.