A charity finance organisation is targeting its investment funds at registered social landlords. The Charities Aid Foundation said its common investment funds could save housing associations tax. The funds, for RSLs with charitable status, are exempt from stamp duty on equity transactions and are eligible for tax credit transitional relief until April 2004. However, the funds met with a cool response from the sector. One analyst said that although they might be useful for smaller charities who needed easy-to-use investment products, they would be less interesting to larger RSLs with sophisticated financial structures. Deborah Reynolds, finance director for Adullam Housing Association, a small charitable organisation, said: "Small organisations do not tend to have a lot of money to invest so it doesn't seem particularly relevant to them." Ron Green, senior marketing executive for the Charities Aid Foundation, said the fund was for associations of all sizes but he expected most interest from medium-sized organisations. He said the fund would allow housing associations to use their charitable status to their advantage. He CAF will promote the funds at the Housing Association Exhibition in Warwick later this month.
A charity finance organisation is targeting its investment funds at registered social landlords.

The Charities Aid Foundation said its common investment funds could save housing associations tax.

The funds, for RSLs with charitable status, are exempt from stamp duty on equity transactions and are eligible for tax credit transitional relief until April 2004.

However, the funds met with a cool response from the sector.

One analyst said that although they might be useful for smaller charities who needed easy-to-use investment products, they would be less interesting to larger RSLs with sophisticated financial structures.

Deborah Reynolds, finance director for Adullam Housing Association, a small charitable organisation, said: "Small organisations do not tend to have a lot of money to invest so it doesn't seem particularly relevant to them."

Ron Green, senior marketing executive for the Charities Aid Foundation, said the fund was for associations of all sizes but he expected most interest from medium-sized organisations.

He said the fund would allow housing associations to use their charitable status to their advantage.

Source

Housing Today