The VAT incurred from carrying out repairs and improvements in this restructuring will be recovered under concessions agreed with the DTLR and Customs & Excise in February this year.
Phil Moore, Places for People regional manager for south and east Yorkshire, said: "Getting the VAT deal was crucial to our success, because otherwise the transfer would not have been viable."
Under the scheme, Sheffield put the contract for refurbishment work out to tender as required by the EU. North British won the contract and agreed to carry out £4.5m of works on behalf of the council.
The VAT deal meant North British could put in £900,000 worth of essential works that would otherwise have been impossible and the transfer went through at post-improvement valuation.
Tenants voted last December for the transfer on a 95% turnout. About 2500 homes will be demolished and 1100 homes built on the estate.
Most of the new homes will be for private sale, but North British has already built 33 for rent and has 200 more of mixed tenure in the pipeline.
Source
Housing Today
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