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PAGE ›› 16 THE PROPERTY HANDBOOK GST • No GST implication for sale and purchase of residential property e.g. manses. • GST is involved with all other Church property. For the purposes of the Goods and Services Tax Act 1985, the purchaser/seller of the property in question is the Trustees. Ask your solicitor to issue the settlement statement (and GST invoice) in the name of “The Presbyterian Church Property Trustees” (not in the name of the parish.) For a property sale, the Trustees will deal with the actual sale price (but not associated costs) as an input in their GST return, and the amount involved when paid will be deducted from the sale proceeds. The sale of gifted property is exempt GST pursuant to Section 14(1) (b) of the GST Act 1985. Proof of gifting must be provided. Parishes should take care to advise the Secretary to the Trustees of the original price of all property so that the correct GST liability can be calculated. The Trustees’ GST number is 55 228 752. Trustees’ Costs Administration costs and legal fees are incurred by the Trustees in handling property transactions on behalf of parishes. Parishes will be invoiced for these as follows: Sale or purchase of property - value over $250,000 $250 Sale or purchase of property - value $50,000 - $250,000 $150 Sale or purchase of property - value under $50,000 $100 All other routine transactions $100 Where transactions involve extra legal costs, these costs will also be charged to the parish. In special circumstances, fees may be reduced or waived. Rates If you purchase a residential property (such as a manse), you must pay rates on it. If you purchase a church, or another building which will be used mainly for religious purposes (such as a hall), the property should be largely exempt from local government body rates. Don’t assume this will happen automatically. Check with your local body and, if necessary, apply for an exemption. This should be done as soon as the property changes hands. If you need advice on a particular property, contact the Secretary to The Trustees.
PAGE ›› 17 THE PROPERTY HANDBOOK Minister’s housing requirements The Church’s regulations on housing for ministers are set out in the Conditions of Service Manual, which is a supplementary provision to the Book of Order. Further details are in the Accommodation for Ministers guidelines. (See the Presbyterian website.) You may provide accommodation for your minister by: • owning a house of an approved standard • providing an accommodation allowance to the minister * • leasing a house from an independent owner • leasing a house from the minister ** There will be taxation implications for the minister in respect of the amount paid as rent. Consult the Secretary to The Trustees if you need advice. * If the minister is to be paid either an accommodation allowance or rent, it should be the lower of the market rental for a suitable property within an appropriate radius of the main worship centre or main site of the ministry, or the cost of the mortgage on a house owned by the minister. Presbyteries often set guidelines. ** Leasing a house from the minister is the least preferred option, and there is a risk that IRD will challenge it. In any event, the rental should be established having regard to market rental prices in the area. The manse should be within a reasonable radius of the main worship centre of the congregation. Exceptions to this must be approved by congregation and presbytery/UDC. What kind of accommodation? Congregations should provide attractive, appropriate accommodation for their ministers. Minimum requirements for a manse • Adequate living space which is separate from the space used for church activities • Facilities for offering hospitality • A study/office with adequate shelving unless this is provided elsewhere • A washing machine and a refrigerator with adequate freezer space • Floor coverings in all rooms • Wardrobes in all bedrooms
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