The Deputy Leader – Minutes – 24 May 2012
The corresponding report of the following item (Minute 19 refers) contains exempt information as defined in Paragraphs 1, 2 and 3 of Part 1 of Schedule 12A of the Local Government Act 1972 (as amended).
1 (1) NORTH LINCOLNSHIRE HOMES RIGHT TO BUY AND VAT TAX SHELTER PROPOSED SETTLEMENT – The Director of Policy and Resources submitted a report to inform the Deputy Leader of the outcome from negotiations with North Lincolnshire Homes (NLH) regarding a proposed one off settlement of the sharing arrangements under the housing stock transfer agreement.
In February 2007 the North Lincolnshire housing stock was transferred to a newly formed registered social landlord (North Lincolnshire homes) and entered into transfer arrangements which provided a shared approach to the benefits that came with the transfer.
Under the agreement the Council received two income streams:
- A net income from sold properties (RTB’s) after discount, administration and a value that compensated NLH for future lost rental income, and
- A 12% share of annual VAT savings under the tax shelter arrangements for years 1 to 9. In the final year 10 the payment moved to what amounted to a cumulative income share across the whole agreement of 16.5%.
Contained within the report were details of a proposal from North Lincolnshire Homes, which had offered a one off payment to the Council in settlement of future benefits under the agreement. Further financial details were outlined within the report.
Resolved – That the offer from NLH of £3.35m in settlement of the housing stock transfer sharing arrangements be accepted.