This site uses cookies. By continuing to browse the site you are agreeing to our use of cookies. To find out more about cookies on this website and how to delete cookies, see our Cookie Policy.
Analytics

Tools which collect anonymous data to enable us to see how visitors use our site and how it performs. We use this to improve our products, services and user experience.

Essential

Tools that enable essential services and functionality, including identity verification, service continuity and site security.

Where Taxpayers and Advisers Meet

TAX ON INTEREST EARNED BY PRIVATE ROAD FUND ASSOCIATION

Deilden
Posts:5
Joined:Mon Jul 27, 2015 10:52 am
TAX ON INTEREST EARNED BY PRIVATE ROAD FUND ASSOCIATION

Postby Deilden » Thu Apr 26, 2018 1:07 pm

I am treasurer of our private road fund which is set up to pay for road repairs. We collect money from each resident and pay any expenses involved in repairing gates, signs and the road itself. We have a sinking fund which is invested in a deposit account in the Association's name and earn interest on this account.
I believe there is a small tax free amount of interest which can be earned by a not for profit association but I cannot find this information on HMRC website.
Grateful for any advice.

bd6759
Posts:4262
Joined:Sat Feb 01, 2014 3:26 pm

Re: TAX ON INTEREST EARNED BY PRIVATE ROAD FUND ASSOCIATION

Postby bd6759 » Fri Apr 27, 2018 9:50 am

There is no exemption as such, but HMRC will treat the association as dormant if
a. the likely tax liability is less than £100, and
b. the association is run solely for the benefit of its members.

See this link here:

https://www.gov.uk/guidance/corporation-tax-trading-and-non-trading#when-hmrc-will-treat-clubs-and-unincorporated-organisations-as-dormant

Within that paragraph there is also a link to "flat management companies". The same principles should apply here.

Deilden
Posts:5
Joined:Mon Jul 27, 2015 10:52 am

Re: TAX ON INTEREST EARNED BY PRIVATE ROAD FUND ASSOCIATION

Postby Deilden » Mon Apr 30, 2018 11:50 am

Thank you so much for your reply and the link to HMRC.


Return to “Savings & Investments, Pensions & Retirement”