Decision Maker: Assistant Director Finance & S151 Officer
Decision status: Recommendations Approved
Is Key decision?: No
Is subject to call in?: No
To consider opting to tax properties following a review and advice from the council’s VAT consultants
(1) That a policy of opting to tax council owned properties where VAT reclaimed on spend on these properties would otherwise contribute to the council’s partial exemption calculation be adopted.
it is recommended that the council opts to tax as many properties as it can to mitigate the risk to partial exemption. In the future, putting in place an “option to tax” should be the standard approach adopted by the Council unless there is a clear reason not to.
Option 1: Don’t opt to tax – rejected due to risk of breaching 5% de minimis and repaying HMRC reclaimed VAT approx. £300k+
Option 2: Take responsibility for utilities and insurance – rejected due to financial constraints.
Reason No Public Access: No
Subject to Urgent Proceedings: No
Contact: Joanne Kaye, Head of Finance and Deputy S151 Officer Email: email@example.com Tel: 01295 221545, Nicola Gardner, Service Accountant Email: firstname.lastname@example.org Tel: 01295 221741.
Publication date: 15/09/2023
Date of decision: 14/09/2023