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worthwhile engaging with consultants who are familiar with the speci c area of practice when considering changes of use including development.
Construction – we have noted above that construction itself is a whole separate area. If you are embarking on any kind of construction project you would we well advised to take professional advice at the outset. It is important in any construction project to have proper project management. In addition, it may be possible to structure the project to recover VAT that may have to be paid.
Development – development projects are again a whole area of practice
and specialist knowledge where it is worthwhile engaging with experienced consultants. Some trustees will come across the principles of clawback and uplift (in effect seeking to protect for the religious institute shares in possible future extra pro t made by purchasers of land from religious oders. This is explained in more detail below.
IF WE DISPOSE OF LAND,
HOW DO WE GET THE BEST VALUE?
As noted above, when disposing of land as an investment the starting point is obtaining (and then following) a quali ed surveyor’s report. Unless the charity takes this approach in order to get best terms reasonably obtainable, it will need Charity Commission approval to validate any later proposed sale.
The report is obliged to address a series of matters and to show that the trustees have considered the physical and legal pros and cons of disposing of the land and buildings, in the context of potential markets. It is in fact a very useful tick box list of items any seller of land should be thinking about.
The report can even, in unusually depressed market conditions, lead to a recommendation not to go to market for sale just yet, but consider renting until markets settle.
The report amongst other things considers, and must comment on, whether there are any actions worth pursuing in preparation for disposal that may add suf cient value to be of net bene t. This includes alterations and other physical things, but also especially asks the question as to whether it is worth seeking the getting of planning permission for development of the land.
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