Are you registered in the UK?

You have reached the Stockport Homes Customer Involvement Team.

Your email has been received. We will respond to your email as soon as we
can.

If your enquiry/email is urgent please call the Customer Involvement Team
on 0161 474 2862.

Regards,

Customer Involvement Team

Stockport Homes

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Dear Sheila Oliver,

I have now investigated your Freedom of Information requests made on 28th
August 2011.

The information you requested can be found below, I hope you find it
useful. However if you have any questions regarding the response you have
received please do not hesitate to contact me using my contact details
below. Furthermore, please find attached Stockport Homes' Board
constitution and the 2009/10 Statutory accounts as requested. The 2010/11
audited accounts are due to be signed at our AGM on 19 September 2011.

Is Stockport Homes registered in the UK?

Yes we are registered in the UK.

I assume Stockport Homes is liable to Corporation tax on any profits,
whereas when this work was in-house at the Council no such liability would
ever arise. Please let me have your latest accounts and let me know what
sort of test these profits would have to pass to remain "Arms' length".

An ALMO is a separate legal entity from the controlling Local Authority
and therefore does not benefit from the exemptions granted to Local
Authorities. As an incorporated entity it is within the charge to
Corporation Tax. However the Council funds the ALMO to carry out services
to manage and improve the council's stock. The ownership of the stock
remains with the Council and the ALMO is a not for profit organisation -
in the event of the ALMO being wound up any surplus remaining in a given
year would be transferred back to the local authority. HMRC have approved
that these services delivered under the management arrangement for housing
services do not constitute "trading" and therefore the ALMO is not liable
for corporation tax on these services.

However where the ALMO offers services to third parties for reward, those
transactions are trading transactions. Bank and building society interest
falls to be taxed under these rules and therefore Stockport Homes do pay
corporation tax on any bank interest generated.

Please let me know the constitution of the Board and the shareholders.

The company is wholly owned by Stockport Council and there is no share
capital. The company is limited by guarantee. The Board is 13 members: 5
x tenants 4 of whom are directly elected by fellow tenants, 4 x
independent members and 4 x Council appointed members

Do payments made to shareholders mean payments would be denied to the
Council?

The Council is the owner and there are no shareholders that benefit
shareholder over the council or vice versa

Did the shareholders introduce capital, and what price were shared issued
at?

See responses above

Regards,

Adam Howell

Business Support Officer

Corporate Services Directorate

Stockport Homes

* 1 St Peter's Square, Stockport, SK1 1NZ

( 0161 474 4497

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