Village Hall Update – Stamp Duty of £32,000 required – £60 per household!

Source – URPC website.

Please see message below from the Vice Chair’ regarding the handover of the new Village Hall:
I, my fellow Councillors and many residents are dismayed that the new Village Hall still stands unused. Despite our best efforts – the annual Christmas Pantomime, beloved of many in the village is, hopefully for the last year, having to be performed in the old Village Hall.

As many of you will be aware, the old Village Hall is (without significant expenditure) nearing the end of its useful life (in fact the Council is spending money just to enable the Pantomime to take place). Your Parish Council had hoped that the new Village Hall would have been up and running some months ago; however we have been delayed by going through the due legal processes!

At the meeting of the Parish Council on 23rd November your Council agreed to acquire the New Hall from the Developers, therefore making it available to residents shortly thereafter.

Shortly after this, the Council’s Solicitors advised us, for the first time, that the Parish Council – which means the residents in the village, will be liable to a Stamp Duty Charge of £32,000 – an average of about £60 per house. This was an amount that the Council had not budgeted for.

Unfortunately the Section 106 Agreement, between Cotswold District Council and the Developers covering the provision of the new hall did not address the Stamp Duty liability!!

Our Clerk and Councillors are exploring alternative ways of structuring the transaction so that the village gets the use of the hall without each house contributing c£60.

There appear to be a number of ways of getting the hall open without us, the residents, paying these amounts – your Council and Clerk, assisted by the District (Mark MacKenzie-Charrington) and County (Nigel Moor) Councillors are actively pursuing these so as to find a route that gives us one of the promised deliverables from the Planning decision without you paying through the nose!

I can assure you that getting to the end goal – a brilliant hall for the use of the village – remains our aim and apologise that I didn’t deliver it this year.

On behalf of the Parish Council may I wish you all a Merry Christmas and a Prosperous and Healthy New Year.

Brian Hanks
Vice Chair’

4 thoughts on “Village Hall Update – Stamp Duty of £32,000 required – £60 per household!

  1. The s106 Agreement states that the transfer to the parish council is to be for the nominal sum of £1 so I do not understand why any stamp duty should be payable. The Council’s solicitor should be asked to explain why he thinks stamp duty is payable.

    1. You are correct about the £1 but the tax is on the notional value, hence £32k. Were the PC regarded as a Local Authority then the tax isn’t payable.

      This is why I see CDC taking the Hall.

      Just have to wait and see.

  2. Its worth someone taking the time to read the S106.

    This is what its says:

    1) Prior to commencement of work on any part of the Community Infrastructure to identify to the council each part of the community infrastructure

    2) Upon Implementation to implement Community Infrastructure Marketing Strategy to secure operators for the community Infrastructure on either :-

    (i) tenancy agreement of not less than 5 years on reasonable terms and for open market rental, or

    (ii) Freehold or Long-leasehold interest at open market value or such other reasonable commercial terms.

    (a) upon completion offer Community/Spots Hall for transfer Transfer to the PC for nominal sum of £1

    In event of PC decline then an offer

    (a) such other party council shall direct for the benifit of the community

    (b) A Management Company

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