Tour of the HART Credit

The accompanying flow diagram shows how funds move, phase by phase, from initial allocation to ultimate delivery.

The key premise underlying the Hart Credit – as indeed it underlies all tax credits – is that sponsors need capital up front but government wishes to award resources only to successfully completed properties. The mechanism of allocation-syndication-completion-delivery spans this financing gap. While in so doing the government reaps less than £1 of cash investment for each £1 of tax foregone, that discount represents the value to government of shifting risk and compliance to the private sector.

Click the forward arrow to examine each phase in greater detail.