Finance requirements

C001 - Issue date - Under review

This can be an extremely complex area and consultation with Legal Services, the Insurance Manager, Directorate Accountant, VAT and Taxation Manager and the council's property consultant is strongly advised.


A lease normally means that you acquire use of a specific piece of land or property for a given period in exchange for a payment (a bit like renting a car). The lease can have various conditions attached and care must be taken not to breach these conditions because breach normally incurs a penalty. The council's property consultants can advise whether the lease is "fit for purpose" and Legal Services can help with ensuring that the lease is properly formed and advise of any restrictive clauses. A key area can be liability and ensuring that there is adequate insurance cover. Please consult the Insurance manager on liability and insurance cover.

Some longer-term and higher value leases may be treated as capital expenditure, although the government's recent prudential guidelines may alter this. Please consult your directorate accountant on this. For VAT, leases will normally be exempt unless subject to the option to tax. An example of the complexities for sale of freehold property is given below.


Licenses can have similar issues but they tend to be a permission to do something rather than temporary acquisition. An obvious example being a driving licence, which can be taken away if you are caught failing to meet certain conditions. Similarly, They tend not to have the same complications as leases but a similar process needs to be followed.

Finally, granting a lease or licence needs the same care and attention as those mentioned above.

Further details

Further details can be obtained from:

Financial Services
Tel: 01865 815440