Under SO973, a Replacement Project is the agreed mechanism whereby trustees can apply for a return of a proportion of the Connexional Priority Fund (CPF) levy, given when a property is sold, to put towards the capital costs of a new property project.
There are two categories of replacement projects.
- Direct Replacement Projects – like-for-like basis.
- No direct replacement of the premise(s) sold.
Projects developing existing buildings in response to the Church’s net zero target are included within this second category, and environmental and sustainability considerations are recognised as missional drivers within the criteria outlined below.
Click here to view the current Criteria for Replacement Projects under SO973.
Step 1
To designate a project as a replacement project following one or more sales, this must be done via the Consents Website.
Tick the field, “Is this project a replacement project?” and enter the details of the project(s) which is being replaced which will be the sale project ID. (e.g. ID number 12345)
Questions about Replacement Project funding can be directed to the Property Support Team For questions about issues with the Consents Website please contact the Online Suite Support Team
Step 2
Once the details have been entered on the Property Consents website, any supporting information for the application should be sent by e-mail to the Property Support Team at property@methodistchurch.org.uk
For Direct Replacement Projects of a like for like basis, please provide a statement as to why you believe this can be classed as such. Where there is no Direct Replacement Project of a like for like basis, please provide the information as outlined in the relevant section of the Criteria for Replacement Projects.
For net zero projects, please provide the following as evidence as part of the application;
- An energy audit report (if you have one)
- The EPC (for domestic properties)
- The carbon footprint of the building (if it has been measured) and predicted carbon savings from the project
- A mission plan which includes creation care
- Technical details of the works proposed (e.g. solar array details, heat pump specification)- even if this is on the consents system, it still needs to be emailed to property@methodistchurch.org.uk to ensure all the evidence is collated in one place.
The Property Support Team will consider your application and liaise with you should further information be required. Purchase and sales projects will be linked via the Consents Website once Final Consent is given by the District. You will be notified about the outcome of your refund request via email.
Additional Information
- TMCP Finance should be made aware of projects that are confirmed as a replacement project through the Consents website and will be able to process the sale proceeds accordingly.
- The CPF Levy will be taken on the sale proceeds and then refunded on the replacement project when you make a payment request for the “CPF levy refund.” The CPF levy is taken on any surplus sale proceeds.
- The CPF levy refund is only available on the cost of acquisition, and not available to cover the costs of the purchase (such as legal or surveyor fees) or property improvement costs (such as decorating or maintenance).
- If you require a CPF levy refund decision to be made by a certain date (e.g. prior to contract exchange on a purchase) then please inform the Property Support Team.
- Replacement Projects are reviewed towards the end of each month by the Property Support Team. The project details need to be uploaded to the Property Consents website with all additional evidence provided for net zero projects.
What happens if the sale has already completed?
If a sale has already completed and the sale proceeds have been sent to TMCP Finance, please select “CPF levy refund” on the funding tab and enter the refund amount when you log the project in the Consents system. The sale amount should be entered. If you do not know the exact amount, please contact TMCP Finance.
What happens if the replacement project will “complete” before the sale?
If the purchase or redevelopment will “complete” before the sale, you should select the funding type (e.g. Circuit Funds (TMCP) if coming from a Model Trust Fund or Methodist Chapel Aid if coming from bridging finance, etc.) In these circumstances, do NOT select “CPF levy refund” as the funds are not yet available and the exact amount is unknown. Please do ensure that alternative funding arrangements are in place so that you have sufficient funds to proceed pending completion of the sale.