The structure of a redevelopment agreement can significantly impact the tax bill. Two societies with identical redevelopments can end up with different tax positions due to variations in their agreements. The difference lies not in the building itself, but in how the deal is structured.

The tax implications are not immediately clear, as the exchange between the developer and the society is often misunderstood. Further details on the common structures and their tax implications are available.

The tax authority's view is that the developer's receipt of development rights and supply of constructed flats to members constitutes an exchange, making each side of the exchange a taxable supply. More information on this topic can be found in the original article.