Riverside Housing Association Limited v Her Majesty's Revenue & Customs

Facts

Riverside Housing Association Limited is a registered social landlord within section 2 of the Housing Act 1996, incorporated under the Industrial and Provident Societies Act 1965 as a company limited by guarantee, and it is common ground that it is a charity. Formed in Liverpool in 1928, it now owns or manages over 22,000 properties across 31 local authority areas, most of them former council estates transferred to it, and it lets them on assured tenancies to socially and economically disadvantaged occupiers. Its income comes principally from rents (largely paid by mandated housing benefit) and from grants paid by the Housing Corporation, and its capital from grants, commercial borrowing and property sales; it is subject to close regulation, must submit accounts, business plans and detailed statistics, and its rents are capped well below market levels. In March 2001 Riverside sought the Commissioners' approval for the issue of a zero-rating certificate under Note (12) to Group 5 of Schedule 8 to the Value Added Tax Act 1994 for the construction of a new head office for its Midlands division in Leicester. The Commissioners requested further information and gave no decision; Riverside treated that as a refusal and appealed to the tribunal, the Commissioners resisting the appeal in principle.