Decision details

Review of the VAT Partial Exemption Position and the Implications of Council Services

Decision Maker: Cabinet

Decision status: Recommendations Approved

Is Key decision?: Yes

Is subject to call in?: No


The subject of the decision:


This report explained the Value Added Tax (VAT) partial exemption position and the implications on Council Services.


Alternative options considered:




The reason for the decision:


Monitoring the VAT partial exemption limit contributed to the overall financial position of the Council, this assisted in ensuring the Council’s service requirements were met which supported the achievement of the priorities set out in the Council Plan.




That Cabinet approves and recommends to Council that:-


(1)        discussions with HMRC continue in light of the partial exemption breach in 2017/18 and the Council pay the agreed sum as detailed in paragraph 2.7 of the report by 7 November 2018 if required;


(2)        the Council continues to closely monitor the partial exemption position on a quarterly basis from 2018/19;


(3)        all additional or deleted capital expenditure schemes reported to Cabinet take full account of the partial exemption position so that decisions on the future capital programme are properly informed;


(4)        further investigation occurs during the next two years to review whether the leisure centres or leisure services, or elements thereof, should be placed in a ‘vehicle’ in order to help address the partial exemption position; and


(5)        a consultant is engaged to review strategic, legal and operational implications of leisure services being placed in a ‘vehicle’; associated costs will be reported at the next appropriate quarterly financial monitoring report.

Reason Key: Affects more than 2 wards;

Wards Affected: (All Wards);

Other reasons / organisations consulted




Contact: Louise Branford-White, Director of Finance (s151 Officer) Email:

Report author: Louise Branford-White

Publication date: 09/10/2018

Date of decision: 09/10/2018

Decided at meeting: 09/10/2018 - Cabinet

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