Charitable Status Wipes Out £4m Pound Corporation Tax Bill for County Durham Landlord...
Believe Housing, Based in Seaham County Durham Reports £16.24m Surplus While Treasury Receives No Corporation Tax....
10th October 2026
One of County Durham's largest so called 'social housing landlords' has managed to dodge yet another significant Corporation Tax Bill reporting a £16.24 million pounds annual surplus while boasting no UK corporation tax being paid for the second consecutive financial year.
Believe Housing Limited, which owns and manages more than 18,400 homes across County Durham, has revealed that its turnover increased to more than £91 million pound during the financial year ending 31 March 2026.
However, despite generating a surplus before taxation of £16,241,000, the supposedly 'charitable housing association' then recorded a corporation tax charge of precisely ZERO !
The revelation comes from the landlord's own audited financial statements, which show that a calculation applying the standard UK corporation tax rate of 25% to its accounting surplus would produce a figure paid to the Treasury of approximately £4.06 million.
That amount was subsequently eliminated in the accounts' tax reconciliation, reflecting the tax exemptions available to charitable organisations as calls for large Housing organisations like Believe Housing to be stripped of the generous tax status originally intended to help much smaller corporations. .
It marks the second consecutive financial year in which Believe Housing has reported a substantial multi-million-pound surplus without recognising any corporation tax charge.
More Than £31 Million in Surpluses Across Two Years
According to the financial statements, Believe Housing's surplus before taxation increased from £14.94 million in 2024/25 to £16.24 million in 2025/26, meaning the County Durham landlord has generated combined accounting surpluses of approximately £31.18 million pounds over just two financial years. Yet the corporation tax charge recorded across both periods remained at zero.
Charitable Status Behind Nil Corporation Tax Charge
Believe Housing controversially operates as a charitable co-operative and community benefit society, registered with the Financial Conduct Authority and regulated by the Regulator of Social Housing, although its alleged charitable activities are highly disputed.
Unlike an ordinary commercial company, the charitable status then allows qualifying income and gains to benefit from exemptions under UK corporation tax legislation, provided the relevant statutory conditions are satisfied.
The exemptions are provided for by legislation, however many critics feel the tax status is being regulally abused by large housing corporations to shield themselves from what would be substantial corporation tax liabilities, which in turn deprive the UK treasury of much needed revenue to fund defence, schools & hospitals, in a move which ultimately shifts the burden onto working tax payers.
Nevertheless, the figures raise a wider public-policy question about whether large housing organisations generating substantial annual surpluses should continue to benefit from extensive corporation tax reliefs, particularly when smaller private-sector businesses do not enjoy the same charitable exemptions.
Supporters of the existing arrangements argue that charitable housing associations reinvest their resources into providing affordable homes, maintaining properties and supporting communities, rather than distributing profits to private shareholders.
Critics, however, question whether the scale of relief remains appropriate for organisations managing hundreds of millions of pounds in assets and generating significant annual accounting surpluses.
Turnover Climbs Above £91 Million...
The corporation tax findings come as Believe Housing's annual turnover increased by approximately £4.1 million, rising from £86.9 million to £91 million, this is despite the firm completely exempt from Corporation Tax liabilities, with the business reporting an operating surplus of £25.05 million, compared with £23.13 million the previous year.
However, its financial statements also reveal that the improvement in its headline operating surplus was substantially influenced by gains made from the disposal of fixed assets, with those gains increasing from £1.9 million in 2024/25 to £4.83 million in 2025/26.
Millions Spent on Housing — But Borrowing Continues to Increase
Believe Housing maintains that its resources are directed towards delivering affordable housing and improving existing properties, where during 2025/26, the association reported investing £45.15 million in building and acquiring new homes, alongside £59.59 million in maintaining and improving its existing housing stock through planned investment and responsive works, It also completed 194 new homes during the financial year.
However, that was said to have been below its target of 200 homes and represented a reduction from the 208 properties completed in the previous financial year.
Meanwhile, the landlord's long-term debt before unamortised borrowing costs increased from approximately £227.08 million to £266.15 million. Interest and finance costs also rose to almost £10 million during the year, demonstrating that, despite recording substantial accounting surpluses and benefiting from charitable tax exemptions, Believe Housing continues to rely heavily on borrowing to finance its housing development programme.
Should Housing Associations Continue to Benefit From Corporation Tax Exemptions?
At the centre of the issue is a broader debate about whether charitable status should provide extensive tax exemptions to housing providers operating at the scale of Believe Housing. The landlord owns and manages approximately 18,413 properties and reports tangible fixed assets approaching £475 million.
Its latest accounts also show a chief executive remuneration package also said to be worth around £252,000, including pension contributions.
Such figures illustrate the significant financial scale of modern housing associations, many of which now operate with significantly complex borrowing arrangements, subsidiary companies and commercial development partnerships.
Yet their charitable structures seemingly allow for qualifying surpluses made through those orgainsations to benefit from taxation arrangements unavailable to ordinary profit-making companies.
Questions Over Commercial Subsidiaries
Believe Housing's corporate structure also includes Believe Developments Limited, a wholly owned subsidiary involved in housing development activities, with the wider group having interests in joint ventures with property developer Homes by Carlton, which include projects at Middleton St George and Witton Gilbert.
The presence of commercial development arrangements raises further questions about how the organisation distinguishes charitable activities from potentially taxable commercial transactions.
A Wider Debate About Housing Association Finances
Believe Housing's latest accounts highlight a situation in which one of County Durham's largest landlords can generate more than £31 million in accounting surpluses over two financial years while sticking two finmgers up to the treasury and reporting no corporation tax bill being due. .
At a time when public services face continuing financial pressures, the figures raise questions not simply about the actions of Believe Housing, but about the taxation system under which large charitable housing associations operate & whether the government should now be looking at how larger hiousing coporations operate to see whether this tax benefit still remains relevant when an October 2026 budget could be set to see working households tax bills soar, whislt firms such as Believe Housing report nothing to pay.
