<p>Taylor Woodrow has handed back £11.3 million of Housing Corporation funding, granted last year to build affordable housing. The move follows a failure to resolve wrangles over the tax implications of its chosen approach to delivery. Taywood’s director of partnering, Terry Fuller, told Housebuilder that the Corporation was “really enamoured”with the developer’s social housing plans and that it was hoping to resolve the tax issues in time for the next bidding round. “Effectively Taylor Woodrow was putting together a joint venture vehicle with a lender, we were then going to give a 20-year lease to an RSL to manage the stock but we would own it. However there was a problem with an obscure finance act,” </p> <p>Fuller explained. “It meant that if any of the stock was sold to a tenant, any tax liability would have to be paid by the RSL not the joint venture. Now it is up to the Corporation to lobby the Treasury for a waiver.” He added: “We were committed to three sites and between 200 and 300 homes. No other housebuilder had taken this approach, ours was the only one retaining the stock. We would have held onto the asset value and used …