Common use of Irrecoverable VAT on the above Clause in Contracts

Irrecoverable VAT on the above. Note 1 Note 2 Note 3 1.1 which are not eligible for Social Housing Assistance as defined in Section 32(13) of the HRA 2008; 1.2 on land (forming part of the total site acquired) which will not be used exclusively for housing provision purposes directly related to the Firm Scheme; 1.3 on estate offices, factories, letting offices; 1.4 on stores (other than external storage provision required by Design and Quality Standards); 1.5 on medical or dental surgeries, clinics; 1.6 on police stations, public libraries, bus shelters; 1.7 on shops, restaurants, public houses, offices; 1.8 on transformer and other related buildings; 1.9 on maintenance depots, tools, plant and vehicles; 1.10 on garages (other than integral garages on market purchase scheme types) and greenhouses; 1.11 on separate commercial laundry blocks and related equipment. FDA start point Scheme Total Scheme Costs Affordable Rent grant Affordable Home Ownership grant Total grant required Affordable Rent grant/unit Affordable Home Ownership grant/unit No of Affordable Rent units No of Affordable Home Ownership units No of Total units A £ 15,000,000 £ 2,400,000 £ 300,000 £ 2,700,000 £ 30,000 £ 15,000 80 20 100 B £ 20,000,000 £ 3,200,000 £ 400,000 £ 3,600,000 £ 40,000 £ 20,000 80 20 100 C £ 21,000,000 £ 3,600,000 £ 400,000 £ 4,000,000 £ 45,000 £ 20,000 80 20 100 D £ 18,000,000 £ - £ - £ - £ - £ - 80 20 100 £ 9,200,000 £ 1,100,000 £ 10,300,000 £ 28,750 £ 13,750 320 80 400 Over payment at termination Scheme Total Scheme Costs Total grant required No of Affordable Rent units completed No of Affordable Home Ownership units No of Total units Affordable Rent grant paid Affordable Home Ownership grant paid Total grant paid Under/over (-£) payment A - - - B - - - C £ 21,000,000 £ 4,000,000 80 20 100 £ 2,300,000 £ 275,000 £ 2,575,000 £ 1,425,000 D £ 18,000,000 £ - 80 20 100 £ 2,300,000 £ 275,000 £ 2,575,000 -£ 2,575,000 £ 4,000,000 160 40 200 £ 4,600,000 £ 550,000 £ 5,150,000 -£ 1,150,000 At termination only C & D have completed. APR payments have underpaid C and over paid D (a nil grant scheme) against the total grant required for those schemes. Total of £5.15m has been paid resulting in a net over payment of £1.15m against the £4m grant required for C. £4m is allocated for recovery against C as per principles in Capital Funding Guide. £0 is allocated for recovery against D Shortfall at termination Scheme Total Scheme Costs Total grant required No of Affordable Rent units completed No of Affordable Home Ownership units No of Total units Affordable Rent grant paid Affordable Home Ownership grant paid Total grant paid Under/over (-£) payment A - B £ 20,000,000 £ 3,200,000 80 20 100 £ 2,300,000 £ 275,000 £ 2,575,000 £ 625,000 C £ 21,000,000 £ 4,000,000 80 20 100 £ 2,300,000 £ 275,000 £ 2,575,000 £ 1,425,000 D £ - - £ 7,200,000 160 40 200 £ 4,600,000 £ 550,000 £ 5,150,000 £ 2,050,000 At termination only B & C have completed. APR payments have been insufficient to meet grant requirements of both schemes. Total of £5.15m has been paid resulting in a net shortfall of £2.05m against £7.2m total grant required. Grant Recipient uses remaining conversion capacity to meet funding shortfall.

Irrecoverable VAT on the above. Note 1 Note 2 Note 3 1.1 which are not eligible for Social Housing Assistance as defined in Section 32(13) of the HRA 2008; 1.2 on land (forming part of the total site acquired) which will not be used exclusively for housing provision purposes directly related to the Firm Scheme; 1.3 on estate offices, factories, letting offices; 1.4 on stores (other than external storage provision required by Design and Quality Standards); 1.5 on medical or dental surgeries, clinics; 1.6 on police stations, public libraries, bus shelters; 1.7 on shops, restaurants, public houses, offices; 1.8 on transformer and other related buildings; 1.9 on maintenance depots, tools, plant and vehicles; 1.10 on garages (other than integral garages on market purchase scheme types) and greenhouses; 1.11 on separate commercial laundry blocks and related equipment. FDA start point Scheme Total Scheme Costs Affordable Rent grant Affordable Home Ownership grant Total grant required Affordable Rent grant/unit Affordable Home Ownership grant/unit No of Affordable Rent units No of Affordable Home Ownership units No of Total units A £ 15,000,000 £ 2,400,000 £ 300,000 £ 2,700,000 £ 30,000 £ 15,000 80 20 100 B £ 20,000,000 £ 3,200,000 £ 400,000 £ 3,600,000 £ 40,000 £ 20,000 80 20 100 C £ 21,000,000 £ 3,600,000 £ 400,000 £ 4,000,000 £ 45,000 £ 20,000 80 20 100 D £ 18,000,000 £ - £ - £ - £ - £ - 80 20 100 £ 9,200,000 £ 1,100,000 £ 10,300,000 £ 28,750 £ 13,750 320 80 400 Over payment at termination Scheme Total Scheme Costs Total grant required No of Affordable Rent units completed No of Affordable Home Ownership units No of Total units Affordable Rent grant paid Affordable Home Ownership grant paid Total grant paid Under/over (-£) payment A - - - B - - - C £ 21,000,000 £ 4,000,000 80 20 100 £ 2,300,000 £ 275,000 £ 2,575,000 £ 1,425,000 D £ 18,000,000 £ - 80 20 100 £ 2,300,000 £ 275,000 £ 2,575,000 -£ 2,575,000 £ 4,000,000 160 40 200 £ 4,600,000 £ 550,000 £ 5,150,000 -£ 1,150,000 At termination only C & D have completed. APR payments have underpaid C and over paid D (a nil grant scheme) against the total grant required for those schemes. Total of £5.15m has been paid resulting in a net over payment of £1.15m against the £4m grant required for C. £4m is allocated for recovery against C as per principles in Capital Funding Guide. £0 is allocated for recovery against D Shortfall at termination Scheme Total Scheme Costs Total grant required No of Affordable Rent units completed No of Affordable Home Ownership units No of Total units Affordable Rent grant paid Affordable Home Ownership grant paid Total grant paid Under/over (-£) payment A - B £ 20,000,000 £ 3,200,000 80 20 100 £ 2,300,000 £ 275,000 £ 2,575,000 £ 625,000 C £ 21,000,000 £ 4,000,000 80 20 100 £ 2,300,000 £ 275,000 £ 2,575,000 £ 1,425,000 D £ - - £ 7,200,000 160 40 200 £ 4,600,000 £ 550,000 £ 5,150,000 £ 2,050,000 1,425,000 At termination only B & C have completed. APR payments have been insufficient to meet grant requirements of both schemes. Total of £5.15m has been paid resulting in a net shortfall of £2.051.425m against £7.2m total grant required. Grant Recipient uses remaining conversion capacity to meet funding shortfall.

Irrecoverable VAT on the above. Note 1 Note 2 Note 3 1.1 which are not eligible for Social Housing Assistance as defined in Section 32(13) of the HRA 2008; 1.2 on land (forming part of the total site acquired) which will not be used exclusively for housing provision purposes directly related to the Firm Scheme; 1.3 on estate offices, factories, letting offices; 1.4 on stores (other than external storage provision required by Design and Quality Standards); 1.5 on medical or dental surgeries, clinics; 1.6 on police stations, public libraries, bus shelters; 1.7 on shops, restaurants, public houses, offices; 1.8 on transformer and other related buildings; 1.9 on maintenance depots, tools, plant and vehicles; 1.10 on garages (other than integral garages on market purchase scheme types) and greenhouses; 1.11 on separate commercial laundry blocks and related equipment. FDA start point Scheme Total Scheme Costs Affordable Rent grant Affordable Home Ownership grant Total grant required Affordable Rent grant/unit Affordable Home Ownership grant/unit No of Affordable Rent units No of Affordable Home Ownership units No of Total units A £ 15,000,000 £ 2,400,000 £ 300,000 £ 2,700,000 £ 30,000 £ 15,000 80 20 100 B £ 20,000,000 £ 3,200,000 £ 400,000 £ 3,600,000 £ 40,000 £ 20,000 80 20 100 C £ 21,000,000 £ 3,600,000 £ 400,000 £ 4,000,000 £ 45,000 £ 20,000 80 20 100 D £ 18,000,000 £ - £ - £ - £ - £ - 80 20 100 £ 9,200,000 £ 1,100,000 £ 10,300,000 £ 28,750 £ 13,750 320 80 400 At termination only C & D have completed. APR payments have underpaid C and over paid D (a nil grant scheme) against the total grant required for those schemes. Total of £5.15m has been paid resulting in a net over payment of £1.15m against the £4m grant required for C. £4m is allocated for recovery against C as per principles in Capital Funding Guide. £0 is allocated for recovery against D Over payment at termination Scheme Total Scheme Costs Total grant required No of Affordable Rent units completed No of Affordable Home Ownership units No of Total units Affordable Rent grant paid Affordable Home Ownership grant paid Total grant paid Under/over (-£) payment A - - - B - - - C £ 21,000,000 £ 4,000,000 80 20 100 £ 2,300,000 £ 275,000 £ 2,575,000 £ 1,425,000 D £ 18,000,000 £ - 80 20 100 £ 2,300,000 £ 275,000 £ 2,575,000 -£ 2,575,000 £ 4,000,000 160 40 200 £ 4,600,000 £ 550,000 £ 5,150,000 -£ 1,150,000 At termination only C & D have completed. APR payments have underpaid C and over paid D (a nil grant scheme) against the total grant required for those schemes. Total of £5.15m has been paid resulting in a net over payment of £1.15m against the £4m grant required for C. £4m is allocated for recovery against C as per principles in Capital Funding Guide. £0 is allocated for recovery against D Shortfall at termination Scheme Total Scheme Costs Total grant required No of Affordable Rent units completed No of Affordable Home Ownership units No of Total units Affordable Rent grant paid Affordable Home Ownership grant paid Total grant paid Under/over (-£) payment A - B £ 20,000,000 £ 3,200,000 80 20 100 £ 2,300,000 £ 275,000 £ 2,575,000 £ 625,000 C £ 21,000,000 £ 4,000,000 80 20 100 £ 2,300,000 £ 275,000 £ 2,575,000 £ 1,425,000 D £ - - £ 7,200,000 160 40 200 £ 4,600,000 £ 550,000 £ 5,150,000 £ 2,050,000 At termination only B & C have completed. APR payments have been insufficient to meet grant requirements of both schemes. Total of £5.15m has been paid resulting in a net shortfall of £2.05m against £7.2m total grant required. Grant Recipient uses remaining conversion capacity to meet funding shortfall. For recovery purposes £5.15m is applied using Capital Funding Guide principles across the two schemes. Grant Recipient cannot attribute more than agreed total grant required for each scheme. Scheme variation Scheme Total Scheme Costs Total grant required No of Affordable Rent units completed No of Affordable Home Ownership units No of Total units Affordable Rent grant paid Affordable Home Ownership grant paid Total grant paid Under/over (-£) payment A £ 15,000,000 £ 2,700,000 80 20 100 £ 2,300,000 £ 275,000 £ 2,575,000 £ 125,000 B £ 20,000,000 £ 3,600,000 80 20 100 £ 2,300,000 £ 275,000 £ 2,575,000 £ 1,025,000 C £ 12,600,000 £ 2,700,000 60 - 60 £ 1,725,000 £ - £ 1,725,000 £ 975,000 D £ 18,000,000 £ - 80 20 100 £ 2,300,000 £ 275,000 £ 2,575,000 -£ 2,575,000 £ 9,000,000 300 60 360 £ 8,625,000 £ 825,000 £ 9,450,000 -£ 450,000 At termination all schemes have completed. Scheme C has only delivered 60 units against agreed 100. All other schemes have delivered as expected.