Anthony Collins advises Rooftop Housing Group in forming VAT cost-sharing group

Anthony Collins has acted for Rooftop Housing Group and its subsidiaries in forming a VAT cost-sharing group with Festival Housing and its subsidiary Festival Property Care (FPC).

The legislation making cost-sharing groups possible was only passed in summer 2012. The firm believes that this is the first time that a cost-sharing group has been set up for a housing association’s ‘core’ maintenance activities of response repairs and voids, gas servicing and repair and planned maintenance.

The gas and planned work will be passed to FPC in stages, as existing contracts end. The total contract value is in the region of £55m. 

The arrangements have meant that Rooftop can retain FPC as the provider of these workstreams without the need for a tender process. They should also save Rooftop around £7m in VAT over the next 10 years.

Anthony Collins’ involvement included carrying out legal due diligence over the arrangements; marking up amendments to new articles of association for FPC and a shareholders’ agreement that had been proposed by Festival Housing’s lawyers; and drafting the contract between the Rooftop organisations and FPC.