Reclaiming community estate overage23/05/18
Government response to Naylor
On 30th January 2018, the Government published its long awaited response to the Naylor review.
One of the key Government responses for NHS trusts and FTs that hold community estate was they would now be able to reclaim overage previously paid or payable to the Department of Health and Social Care (DHSC) on the disposal of ex PCT properties.
This response was to address concerns that trusts were not incentivised to sell these ex PCT properties (when they were no longer fit for purpose), as they were unable to retain and re-use the full sale proceeds arising from their disposal.
New guidance on reclaiming overage
Further guidance of how overage may be reclaimed has now been issued by the DHSC.
Key points include:
- Overage will be repaid as Public Dividend Capital (PDC).
- In order to reclaim the overage, the trust must demonstrate that its plans to spend the PDC are consistent with STP priorities and provide plans to transform the service model, patient care or support integration.
- Claims can be made on any overage paid or payable since April 2017.
How Capsticks can help
The obligations for trusts holding ex-PCT estate under the PCT Property Transfer Schemes are complex. We have extensive experience of advising trusts in relation to this. We can help trusts to ensure that they maximise the financial return on their estate strategy and do not accidently fall foul of their obligations under PCT Property Transfer Schemes.
If you are planning to dispose of ex PCT property (or have done so since April 2017), we can assist with your disposal strategy to ensure that you aren’t penalised by overage payments.