Abstract:
On May 9, 2012, judgment was given in Helena Partnerships Ltd (HPL) v HMRC. Lord Justice Lloyd decided that for the period October 2001 to November 2004, HPL, a company limited by guarantee and a registered social landlord, was not a charity for the purposes of securing an exemption from corporation tax. Lord Justice Lloyd based his decision on the wording of HPL’s objects in its memorandum and articles of association. As a result of the decision, HPL became liable to pay over £6 million in corporation tax, plus interest, for two consecutive accounting periods. This article argues that there should have been a different outcome for this case and that HPL should not have been held liable to pay any corporation tax for the relevant period.