8.46 In some circumstances, the surplus land may become available later in the contract (for example, where the vacation of the site is dependant on the new hospital being built) and the NHSScotland body may wish to put a "cash injection" into the deal in the meantime in return for a reduction in service payments. The NHSScotland body itself may undertake to sell the surplus land and to put all or some of the proceeds into the deal. In these circumstances, the NHSScotland body would be expected to market the site conventionally, i.e. the sale could be to any buyer so long as at least OMV is obtained. Effectively the relationship between the sale of the land and the reduction in the unitary fee is divorced. Prepayments of this sort should only be made if they are justifiably value for money.
8.47 Bullet payments should not be made ahead of service commencement and the NHSScotland body Board should take advice on the legality of the proposed transaction from its lawyers. The FBC should fully explain the rationale for the bullet payment and its use should be cleared with the SGHD. It must comply with the Scottish Government's guidance on capital injections, Bodies must consider the accounting implications carefully and set out the anticipated impact on their balance sheets.
8.48 A debtor is created at the point the cash is injected in the deal and write-off is, as before, over the shorter of the primary lease period or the period over which the reduction in payments is obtained. The NPV of the reduction in service payments should at least equal the cash injected in the deal. The debtor is included within net relevant assets for the calculation of the cost of capital charge.
8.49 The land should be revalued in the NHSScotland body's books at OMV at the date it becomes available and is put up for sale. Any difference between the OMV and proceeds actually realised will form a profit or loss on disposal.