Cambridgeshire Constabulary Vehicle Workshop Decision to Opt to Tax
May 16th, 2016
To approve the decision to opt to tax the vehicle workshop at the Lakes Business Park,
Cambridgeshire Constabulary requires a modern central workshop for its vehicle fleet.
The Cambridgeshire Police and Crime Commissioner’s Business Coordination Board (BCB) at their meeting on the 27th August 2015 discussed the proposal and agreed to the funding of the project. The site comprises approximately 0.34ha (0.847acres) and had a purchase price of £296,450 plus VAT, payable upon completion of the land purchase, which took place on 15th April 2016. The total value of the contract is £1.3m plus VAT.
Following consideration of a ‘Proposal to Opt to Tax’ report by the Chief Finance Officer to the Estates Sub Group on the 11th May 2016, the decision to opt to tax the workshop has been taken to enable the reclaiming of the VAT on the purchase price and the charging of VAT should the site be rented or sold to another party within the 20 years duration of the option. Due to the nature of the site it is considered to be highly unlikely that this would impact on the attractiveness of the site.