Community Empowerment (Scotland) Act 2015 - asset transfers: social value guidance

7. Price and Financial Considerations

7.1 The Community Empowerment (Scotland) Act 2015 does not say how much should be paid to purchase an asset or in rent, whether it should be at market value or at a discount. The community transfer body has to state in the asset transfer request how much they are prepared to pay, alongside the benefits the project will deliver, and the relevant authority has to decide whether to accept that price.

7.2 When the price offered in an asset transfer request is less than the market value of the property, the relevant authority will need to consider whether the proposed benefits to be delivered by the community transfer body justify the proposed discount. The benefits of the request should be proportionate to the value of the asset and the level of discount, with an appropriate level of information to support the application. Any decision to transfer an asset must represent good use of public resources.

7.3 The likely price of the asset is something the community transfer body will need to consider at an early stage in developing its proposals, along with the initial and ongoing costs of the project. It will be helpful for relevant authorities to give an indication of their expectations in terms of price at an early stage in discussions, if possible.

7.4 Community transfer bodies should not assume that asset transfers will be at a nominal sum. They can get support from various organisations including the Community Ownership Support Service (COSS), the relevant authority concerned with the asset transfer, and local third sector service provision in working out what price to offer. Each asset transfer application is individual and will require a tailored approach to calculating and agreeing price. Links to support can be found at chapter 14 of this guidance.

7.5 When the price offered in an asset transfer request is less than the market value of the property, the relevant authority will need to consider whether the proposed benefits to be delivered by the community transfer body justify the proposed discount (which will be accounted for as a "gift"). This will be based solely on the analysis of the information included in the request. Statutory guidance for relevant authorities outlines ways to do this at chapter 13.7.

7.6 Asset transfer at less than market value is justified when these additional benefits empower communities and align with local and national priorities to enable the delivery of 'best value' across the public sector as a whole. Such benefits are likely to align with one or more of the Scottish Government's National Outcomes , which all Scottish public authorities are required to have regard to in carrying out their functions (under Part 1 of the Community Empowerment (Scotland) Act 2015).