The Local Authorities (Capital Finance) Regulations 1997

1. Introductory Text

2. PART I GENERAL

   1. 1. Citation, commencement and interpretation

3. PART II EXPENDITURE FOR CAPITAL PURPOSES

   1. Expenditure to be expenditure for capital purposes

      1. 2. Issue of loan instruments

      2. 3. Building works

      3. 4. Advances and grants for building works

      4. 5. Repayment of grants by local authority

      5. 6. Housing disposal costs

      6. 7. Computer programs

      7. 8. Expenditure under private finance transactions

   2. Expenditure not to be expenditure for capital purposes

      1. 9. Financial assistance for officers

      2. 10. Expenditure on certain investments

4. PART III CHARGE OF EXPENDITURE TO REVENUE ACCOUNTS

   1. 11. Expenditure required to be charged to a revenue account

   2. 12. Expenditure not required to be charged to a revenue account

5. PART IV CREDIT ARRANGEMENTS

   1. Preliminary Provisions

      1. 13. Interpretation

      2. 14. Capital cost of leases

      3. 15. Consideration to be disregarded

      4. 16. Meaning of private finance transaction

   2. Transactions which are credit arrangements

      1. 17. Private finance transactions

   3. Leases and contracts which are not credit arrangements

      1. 18. Leases and contracts of small value

      2. 19. Leases under which the consideration given mostly in first year

      3. 20. Operating leases

      4. 21. Contracts with residuary bodies

      5. 22. Licensing contracts

      6. 23. Investments made for the purposes of a superannuation fund

      7. 24. Other leases excluded from section 48

      8. 25. Other contracts excluded from section 48

   4. Initial and subsequent cost of leases

      1. 26. Exclusion of leases from section 49(2)

   5. Leases of which the initial cost is nil

      1. 27. Cost of lease at any time

      2. 28. Leases under certain private finance transactions

      3. 29. Lease of land for term not exceeding three years

      4. 30. Lease of dwelling-house for use as accommodation for homeless persons

      5. 31. Lease of land for non-housing purposes

      6. 32. Consecutive leases of land for total term not exceeding ten years

      7. 33. Fire authority leases

      8. 34. National Park authority leases

   6. Other leases

      1. 35. Leases having an initial cost which includes consideration under earlier lease

      2. 36. Leases of other descriptions

      3. 37. Leases under private finance transactions—leases not falling with regulation 28

      4. 38. Reduction in the initial cost of certain leases

      5. 39. Cost at any time of certain leases

   7. Private finance transactions

      1. 40. Transactions for the provision of a capital asset and services

      2. 41. Transactions for the replacement or enhancement of a building and provision of heating services

      3. 42. Transactions for the provision of a building and heating services

   8. Initial and subsequent cost of other credit arrangements

      1. 43. Arrangement for improving the heating or lighting of a building

      2. 44. Arrangement for improving street lighting

      3. 45. Initial cost and cost at any time of arrangements for heating or lighting improvements

   9. Variation of credit arrangements

      1. 46. Variation of arrangements excluded from section 49(2)

      2. 47. The adjusted cost of arrangements—general provision

      3. 48. Leases having an adjusted cost of nil

      4. 49. Variation of lease where initial cost included consideration under earlier lease

      5. 50. Continuation of tenancy under Part II of the Landlord and Tenant Act 1954

      6. 51. Cost of arrangements at any time after variation

6. PART V CREDIT APPROVALS

   1. 52. Interpretation

   2. 53. Specified capital grants—all local authorities

   3. 54. Specified capital grants—local authorities in England

   4. 55. Specified capital grants—local authorities in Wales

7. PART VI CAPITAL RECEIPTS

   1. Sums to be capital receipts

      1. 56. Transfer of property under the London Government Act 1963

      2. 57. Transfer of property under the Local Government Act 1972

      3. 58. Repayment of money deemed to have been borrowed

      4. 59. Payment made to redeem landlord’s share

      5. 60. Disposal of premises transferred to grant-maintained school

   2. Sums not to be capital receipts

      1. 61. Capital receipts not exceeding £6,000

      2. 62. Disposal of investments

      3. 63. Repayment of grants

8. PART VII RESERVED PART OF CAPITAL RECEIPTS

   1. Preliminary provisions

      1. 64. Interpretation

      2. 65. Capital receipts of debt-free authorities

   2. Share capital and loan capital

      1. 66. Disposal of share and loan capital

   3. Repayment of grants and other receipts

      1. 67. Grants and advances to housing associations

      2. 68. Payments in respect of transferred property and deemed borrowing

      3. 69. Payments for redemption of landlord’s share

      4. 70. Payments in respect of disposal of premises transferred to grant-maintained school

   4. Interests in land and other assets

      1. 71. Assets held for the administration of justice or for the purposes of the police or civil defence

      2. 72. Hostels and lodging houses

      3. 73. Crematoria

      4. 74. Land used for the purposes of education

      5. 75. Agricultural holdings

   5. Special provisions for Wales

      1. 76. Disposal of land held for housing purposes

      2. 77. Disposal of shared ownership leases

      3. 78. Other disposals of dwellings

9. PART VIII CAPITAL RECEIPTS TO BE TREATED AS REDUCED

   1. Preliminary provisions

      1. 79. Meaning of authority

      2. 80. Capital value of a lease

      3. 81. Adjusting the amount by which a capital receipt shall be reduced

      4. 82. Capital receipts in relation to a single asset

      5. 83. Notional capital receipts

      6. 84. Nature of disposal of interest in land

      7. 85. Meaning of regeneration project

   2. Disposals of land in aid of regeneration

      1. 86. Capital receipts derived from disposals made to assist regeneration

      2. 87. Disposal of unoccupied dwellings

      3. 88. Disposal of industrial estates

      4. 89. Disposal of docks and harbours etc.

      5. 90. Disposal of leisure facilities

      6. 91. Disposal of shops and offices etc.

      7. 92. Disposal of land for development

      8. 93. Amount of reduction of receipts derived from relevant disposals

   3. Capital receipts in respect of which repayments fall to be made to a public body

      1. 94. Improvement of land out of moneys provided by Parliament

      2. 95. Improvement of land out of moneys provided by the Urban Regeneration Agency or the Welsh Development Agency

   4. Other disposals of interests in land

      1. 96. Disposal of recently acquired interests in land

      2. 97. Land in England—disposal of certain dwellings

      3. 98. Disposal of recently improved land

      4. 99. Disposal and replacement of land or buildings

      5. 100. Disposal of former new town assets

      6. 101. Disposal of former residuary body assets

      7. 102. Disposal of land—compensation for planning decision

      8. 103. Disposal of land—development of land by authority

      9. 104. Disposals of dwellings in exchange for certain flats

10. PART IX NOTIONAL CAPITAL RECEIPTS

    1. Preliminary provisions

       1. 105. Interpretation

       2. 106. Notional capital receipts to be treated as reduced

    2. Reserved part of notional capital receipts

       1. 107. Disposal of redundant land in exchange for vacant land

       2. 108. Disposal of land to another local authority

       3. 109. Disposal of land in exchange for nomination rights

       4. 110. Disposal of interest in land in exchange for works on the land

       5. 111. Disposal of land in exchange for right to use the land after enhancement

       6. 112. Disposal of property under a private finance transaction

       7. 113. Disposal of lease in exchange for lessor’s promise to forbear

       8. 114. Disposal of assets in exchange for share or loan capital in a company

11. PART X THE CREDIT CEILING

    1. Modifications of credit ceiling

       1. 115. Interpretation

       2. 116. Credit ceiling on or after 1st April 1997

       3. 117. Credit ceiling not reduced by certain minimum revenue provision

       4. 118. Credit ceiling increased by use of amount set aside to pay levy on disposals of housing

       5. 119. Credit ceiling not increased by use of amount set aside to meet certain expenditure

       6. 120. Credit ceilings of combined and superseded fire authorities

       7. 121. Credit ceilings of authorities for National Parks

    2. Excluded credit arrangements

       1. 122. General exclusion for leases of land

       2. 123. Exclusion for private finance transactions

12. PART XI THE ADJUSTED CREDIT CEILING

    1. 124. Adjusted credit ceiling

    2. 125. Basis of determination

    3. 126. Amounts set aside—transferred property and deemed borrowing

    4. 127. Amounts set aside—transferred debt of designated councils

    5. 128. Amounts set aside—advances to housing associations

    6. 129. Amounts set aside—interests in a regulated company

13. PART XII MINIMUM REVENUE PROVISION

    1. Preliminary provisions

       1. 130. Interpretation

    2. The components of minimum revenue provision

       1. 131. Minimum revenue provision for financial years beginning after 31st March 1997

       2. 132. Percentage of the housing amount and non-housing amount

       3. 133. Percentage of the relevant amount

       4. 134. Outstanding advances from a loans fund

       5. 135. Transferred debt of designated councils

       6. 136. Use of certain credit approvals

       7. 137. Use of amounts set aside to meet liabilities under credit arrangements which had an initial cost of nil

    3. Commutation of periodic payments

       1. 138. Commutation adjustments to minimum revenue provision

    4. The housing amount and non-housing amount

       1. 139. Basis of determination

       2. 140. Housing and non-housing amounts for financial year beginning 1st April 1997

       3. 141. Housing and non-housing amounts for subsequent financial years

       4. 142. General provisions affecting the determination of housing and non-housing amounts

    5. The housing component for subsequent financial years

       1. 143. Determining the housing component

       2. 144. Determining the housing reduction

       3. 145. Determining the housing increase

       4. 146. Increase in housing component where minimum revenue provision in the last year was nil

    6. The non-housing component for subsequent financial years

       1. 147. Determining the non-housing component

       2. 148. Determining the non-housing reduction

       3. 149. Determining the non-housing increase

       4. 150. Increase in non-housing component where minimum revenue provision in the last year was nil

    7. The relevant amount

       1. 151. Relevant amount for financial year beginning 1st April 1997

       2. 152. Relevant amount for subsequent financial years

       3. 153. Adjustment for certain amounts set aside under separate provision

14. PART XIII USE OF AMOUNTS SET ASIDE TO MEET CREDIT LIABILITIES

    1. 154. Interpretation

    2. 155. Use of amounts set aside in respect of certain capital receipts

    3. 156. Use of amounts set aside—expenditure for capital purposes

    4. 157. Use of amounts set aside—revenue expenditure

    5. 158. Transfer of amounts set aside

    6. 159. Conditions specified in relation to the transfer of amounts set aside

15. PART XIV SUPPLEMENTARY PROVISIONS

    1. 160. Interpretation of Part IV of the Act—references to loans and borrowing

    2. 161. Approved investments

    3. 162. Revocations

    4. 163. Savings

16. Signature

17. 1. SCHEDULE 1

       USE OF LAND FOR A SPECIFIED PURPOSE

       1. 1. the fire service or police service, the magistrates' courts services,...

       2. 2. a hostel for the homeless, or the social services functions...

       3. 3. a school, or an institution providing further education, or training,...

       4. 4. an archive, a library, a museum or an art gallery;...

       5. 5. a community hall, a conference centre, a theatre, a concert...

       6. 6. a bus station, a vehicle depot, a garage, or a...

       7. 7. an allotment, a smallholding, a cemetery, a playing field (other...

       8. 8. an industrial unit, a dog compound, a market, a public...

       9. 9. a town hall, or local authority offices (other than offices...

       10. 10. a house or other dwelling provided by a local authority...

    2. SCHEDULE 2

       MINIMUM REVENUE PROVISION SAVINGS AND COMMUTATION ADJUSTMENTS

       1. PART 1 Interpretation

          1. 1. In this Schedule— “the authority”, “the current year”, “the housing...

       2. PART 2 Commutation Adjustments

          1. 2. The authority’s commutation adjustment for the current year shall be...

       3. PART 3 Minimum Revenue Provision Savings

          1. 3. Subject to paragraph 5, where the authority’s adjusted credit ceiling...

          2. 4. Subject to paragraph 5, where the authority’s adjusted credit ceiling...

          3. 5. The authority’s mimimum revenue provision savings for the current year...

       4. PART 4 INTEREST SAVINGS AND THE AMOUNT IN RESPECT OF INTEREST

          1. 6. Subject to paragraph 8, for the purposes of Part 2...

          2. 7. In order to calculate item “DI” in the formula in...

          3. 8. The authority’s interest savings for the current year may be...

          4. 9. Subject to paragraph 10, for the purposes of Part 2...

          5. 10. The amount in respect of interest for the current year...

    3. SCHEDULE 3

       SUBORDINATE LEGISLATION REVOKED

18. Explanatory Note