Decision details
The Former Radstock Infants School – Payment of tax liabilities arising from a property transaction and authority to dispose of asset
Decision Maker: Cabinet Member - Finance and Efficiency
Decision status: Approved
Is Key decision?: No
Is subject to call in?: Yes
Purpose:
Authority is required to market the former Radstock Infants School and pay capital gains tax.
Decision:
The Cabinet Member agrees to :
a) Authorise a disposal of the subject property on the open market on behalf of the trustees.
b) Authorise payment of a tax bill to HMRC.
Reasons for the decision:
The Council now needs to pay the capital gains tax bill with immediate effect. Authority also required to dispose of the asset on the open market to enable a sale.
This will enable the Council to realise sale proceeds to pay the CGT and pay the funds realised net of the CGT and other outgoings connected with the trust and the sale to the reverters. The Council has held the asset on bare trusts for the reverters since 2005 and the CGT liability is a liability of the trust and is deductible from the proceeds prior to distribution. Once the trust fund, net of liabilities, has been distributed, the bare trust will have been terminated.
Alternative options considered:
The capital gains tax bill is outstanding and must be settled so no other option is available. Member approval to dispose of the site is also a requirement to enable a sale to progress. There is no other viable alternative option.
Publication date: 16/04/2019
Date of decision: 16/04/2019
Effective from: 26/04/2019
Accompanying Documents:
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