Purpose

The purpose of this report is to approve the option to tax in relation to the assets within 1 to 8 Cavendish Walk, Huyton.

Decision

The Executive Director (Resources) hereby:

(i)       Approves the option to tax relating to the assets within the 1 to 8 Cavendish Walk, Huyton; and

(ii)       Authorises the Head of Legal Services to prepare and complete the necessary documentation.

Alternative options considered

The Council could decide not to opt to tax in respect of the land and premises but this would mean VAT would be payable on the required payment to acquire and may not be fully recoverable by the Council.

By not opting to tax this may cause the Council to breach its 5% partial exemption limit. This would result in the Council’s entire VAT amount paid in relation to VAT exempt business activities (e.g. income from rents, land sales) within the year becoming irrecoverable.  In addition, if the Council decides not to opt to tax the acquisition would be subject to increased Stamp Duty Land Tax (SDLT).