- Y Diweddaraf sydd Ar Gael (Diwygiedig)
- Pwynt Penodol mewn Amser (01/04/2006)
- Gwreiddiol (a wnaed Fel)
Version Superseded: 31/03/2008
Point in time view as at 01/04/2006.
The Local Authorities (Capital Finance and Accounting) (England) Regulations 2003, PART 4 is up to date with all changes known to be in force on or before 15 August 2024. There are changes that may be brought into force at a future date. Changes that have been made appear in the content and are referenced with annotations.
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7.—(1) For the purposes of Chapter 1 of Part 1 (capital finance etc), the sums referred to in paragraph (2), paid on or after 1st April 2004, shall be treated as capital receipts.
(2) Subject to paragraph (3), the sums referred to for the purposes of paragraph (1) are sums paid to a local authority as repayment of any loan, grant or other financial assistance given by the local authority for such a purpose that, if the giving of that financial assistance had been expenditure incurred at the time of the repayment, it would have constituted capital expenditure(1).
(3) Where the financial assistance referred to in paragraph (2) is a loan given by a parish council or charter trustees, any sums paid to the local authority as repayment of that loan shall not be treated as capital receipts.
Commencement Information
I1Reg. 7 in force at 1.1.2004 for specified purposes and 1.4.2004 in so far as not already in force, see reg. 1(1)
8. For the purposes of Chapter 1 of Part 1, a sum received by a local authority on or after 1st April 2004 in respect of the disposal of the authority’s rights and obligations as mortgagee of any housing land which, apart from this regulation, would not be a capital receipt, shall be treated as a capital receipt.
Commencement Information
I2Reg. 8 in force at 1.1.2004 for specified purposes and 1.4.2004 in so far as not already in force, see reg. 1(1)
9. For the purposes of Chapter 1 of Part 1, where an interim or final payment is made to a local authority, on or after 1st April 2004, in accordance with Schedule 6A to the Housing Act 1985 (redemption of landlord’s share)(2), the sum received by the authority shall be treated as a capital receipt if, apart from this regulation, it would not be a capital receipt.
Commencement Information
I3Reg. 9 in force at 1.1.2004 for specified purposes and 1.4.2004 in so far as not already in force, see reg. 1(1)
9A. For the purposes of Chapter 1 of Part 1, a premium received by a local authority on or after 1st April 2006 in respect of a Social HomeBuy disposal which, apart from this regulation, would not be a capital receipt, shall be treated as a capital receipt.]
Textual Amendments
F1Reg. 9A inserted (1.4.2006) by The Local Authorities (Capital Finance and Accounting) (Amendment) (England) Regulations 2006 (S.I. 2006/521), regs. 1(1), 3 (with reg. 1(3))
10.—(1) [F2Subject to paragraph (7),] a sum received by a local authority which, apart from this regulation, would be a capital receipt by virtue of section 9(1) shall not be treated for the purposes of Chapter 1 of Part 1 as a capital receipt if the aggregate of all sums received or to be received by the authority in respect of the disposal of an interest in a capital asset, for which the sum is paid, does not exceed £10,000.
(2) A sum received by a local authority which, apart from this regulation, would be treated as a capital receipt by virtue of regulation 7, shall not be treated for the purposes of Chapter 1 of Part 1 as a capital receipt if the aggregate of all sums received or to be received by the authority as repayment of a loan, grant or other financial assistance, for which the sum is paid, does not exceed £10,000.
(3) A sum received by a local authority which, apart from this regulation, would be treated as a capital receipt by virtue of regulation 8, shall not be treated for the purposes of Chapter 1 of Part 1 as a capital receipt if the aggregate of all sums received or to be received by the authority in respect of the disposal of the authority’s rights and obligations, for which the sum is paid, does not exceed £10,000.
(4) A sum received by a local authority which, apart from this regulation, would be treated as a capital receipt by virtue of regulation 9, shall not be treated for the purposes of Chapter 1 of Part 1 as a capital receipt if the aggregate of all sums received or to be received by the authority in respect of redemption of the landlord’s share, for which the sum is paid, does not exceed £10,000.
(5) [F3Subject to paragraph (7),] a notional capital receipt(3) which, apart from this regulation, would be treated as a capital receipt received by a local authority by virtue of regulation 22(5), shall not be treated for the purposes of Chapter 1 of Part 1 as a capital receipt if the aggregate of all sums received or to be received by the authority in respect of the disposal of the interest in housing land, for which the notional capital receipt is determined, does not exceed £10,000.
(6) In paragraphs (1) and (5), “all sums received or to be received by the authority” include the amount of all notional capital receipts determined in respect of the disposal.
[F4(7) Paragraphs (1) and (5) do not apply in relation to a premium received by a local authority, on or after 1st April 2006, in respect of a Social HomeBuy disposal.]
Textual Amendments
F2Words in reg. 10(1) inserted (1.4.2006) by The Local Authorities (Capital Finance and Accounting) (Amendment) (England) Regulations 2006 (S.I. 2006/521), regs. 1(1), 4(a) (with reg. 1(3))
F3Words in reg. 10(5) inserted (1.4.2006) by The Local Authorities (Capital Finance and Accounting) (Amendment) (England) Regulations 2006 (S.I. 2006/521), regs. 1(1), 4(a) (with reg. 1(3))
F4Reg. 10(7) added (1.4.2006) by The Local Authorities (Capital Finance and Accounting) (Amendment) (England) Regulations 2006 (S.I. 2006/521), regs. 1(1), 4(b) (with reg. 1(3))
Commencement Information
I4Reg. 10 in force at 1.1.2004 for specified purposes and 1.4.2004 in so far as not already in force, see reg. 1(1)
11. A sum received by a local authority—
(a)under any arrangement which is treated, in accordance with proper practices, as an operating lease or a finance lease;
(b)which, apart from this regulation, would be a capital receipt; and
(c)which, in accordance with proper practices, is to be credited to a revenue account,
shall not be treated for the purposes of Chapter 1 of Part 1 as a capital receipt.
Commencement Information
I5Reg. 11 in force at 1.1.2004 for specified purposes and 1.4.2004 in so far as not already in force, see reg. 1(1)
12.—(1) This regulation applies to capital receipts which—
(a)a local authority derives from the disposal of an interest in housing land other than a disposal which is a qualifying disposal [F5or a small scale disposal]; and
(b)on or after 1st April 2004, have been received by the local authority.
(2) Subject to paragraph (3), where this regulation applies, the local authority shall use capital receipts to pay the amount specified in paragraph (4) (“the specified amount”) to the Secretary of State on or before—
(a)the last day of the calendar month immediately following—
(i)31st March;
(ii)30th June;
(iii)30th September; or
(iv)31st December,
whichever of those is the earliest date following the day on which the authority receives the capital receipt; or
(b)if later, such date as is notified to the local authority by the Secretary of State.
(3) Where it is not reasonably practicable for the local authority to calculate the specified amount by the date on or before which it is payable under paragraph (2) (“the due date”)—
(a)the amount to be paid by the due date shall be instead the local authority’s best estimate of the specified amount (“the estimated amount”);
(b)the local authority shall notify the Secretary of State in writing, at the time of payment, that it is paying the estimated amount rather than the specified amount;
(c)the local authority shall—
(i)provide the Secretary of State with a statement of the specified amount, the estimated amount, and the amount which is equal to the specified amount less the estimated amount already paid (“the balance”); and
(ii)if the balance is positive, pay that amount to the Secretary of State,
by no later than [F6the balance payment date]; and
[F7(d)if the balance is negative—
(i)subject to paragraph (vi),the local authority may offset the amount it paid in excess of the specified amount, together with the amount of any interest it paid to the Secretary of State in respect of that excess, (“the excess amount”) against any further specified amount, estimated amount or amount of interest payable to the Secretary of State by the local authority under this regulation or regulation 13;
(ii)where the local authority offsets the excess amount in accordance with paragraph (i), it shall notify the Secretary of State of this, and the amount of the offset, at the time it pays the further specified amount, estimated amount or interest as the case may be;
(iii)where the local authority does not have, or will not have within the relevant 6 month period, any further specified amount, estimated amount or interest against which it can offset the excess amount, it may notify the Secretary of State in writing that it is unable to offset the excess amount;
(iv)subject to paragraph (v), where the local authority does not have, or will not have within the relevant 3 month period, any further specified amount, estimated amount or interest against which it can offset the excess amount, and the local authority would, if it could not offset the excess amount within the relevant 3 month period, suffer severe financial problems, it may notify the Secretary of State in writing of the problems and request the Secretary of State to repay the excess amount to it;
(v)where the local authority notifies the Secretary of State under paragraph (iv), it shall do so within the period of 14 days immediately following the balance payment date or within such longer period as is agreed by the Secretary of State;
(vi)subject to paragraph (ix), where the local authority notifies the Secretary of State under paragraph (iii) or (iv), it may not offset the excess amount against any further specified amount, estimated amount or interest;
(vii)as soon as reasonably practicable after the Secretary of State receives written notification from the local authority under paragraph (iii) or, if later, the statement under sub-paragraph (c), he shall repay the excess amount to the local authority;
(viii)where the Secretary of State receives written notification from the local authority under paragraph (iv) within the period required by paragraph (v) and is satisfied that the local authority would suffer severe financial problems if he does not repay the excess amount to it, he shall repay the excess amount to the local authority as soon as reasonably practicable after he is so satisfied (whether or not he does so during or after the relevant 3 month period);
(ix)where the Secretary of State receives written notification from the local authority under paragraph (iv) within the period required by paragraph (v) and is not satisfied that the local authority would suffer severe financial problems if he does not repay the excess amount to it, he shall notify the local authority, as soon as reasonably practicable, that he is not so satisfied and paragraph (vi) shall not apply.]
(4) Subject to reductions made under regulations 14 to 21, the specified amount is an amount equal to—
(a)75 per cent of the capital receipt in relation to the disposal of a dwelling; and
[F8(aa)to the extent not included in sub-paragraph (a), 75 per cent of the capital receipt, received by a local authority on or after 1st April 2006, in relation to the disposal of the authority’s rights and obligations as mortgagee of any dwelling;
(ab)to the extent not included in sub-paragraph (a) or (aa), 75 per cent of the capital receipt, received by a local authority on or after 1st April 2006, in relation to a Social HomeBuy disposal; and]
(b)50 per cent of the capital receipt in relation to the disposal of any other interest in housing land.
(5) The total amount of any reductions made to the capital receipt for a disposal under regulations 14 to 21, shall not exceed the amount of that capital receipt.
[F9(6) In this regulation—
“balance payment date” means the last day of the calendar month immediately following—
31st March;
30th June;
30th September; or
31st December,
whichever of those is the earliest date following the due date;
“the relevant 6 month period” means the period beginning on the balance payment date and ending on the last day of the calendar month that is six months after the balance payment date; and
“the relevant 3 month period” means the period beginning on the balance payment date and ending on the last day of the calendar month that is three months after the balance payment date.]
Textual Amendments
F5Words in reg. 12(1)(a) inserted (16.12.2004) by The Local Authorities (Capital Finance and Accounting) (Amendment) (England) (No. 2) Regulations 2004 (S.I. 2004/3055), regs. 1(1), 3
F6Words in reg. 12(3)(c) substituted (1.4.2004) by The Local Authorities (Capital Finance and Accounting) (Amendment) (England) Regulations 2004 (S.I. 2004/534), regs. 1(1), 3(a)
F7Reg. 12(3)(d) substituted (1.4.2004) by The Local Authorities (Capital Finance and Accounting) (Amendment) (England) Regulations 2004 (S.I. 2004/534), regs. 1(1), 3(b)
F8Reg. 12(4)(aa)(ab) inserted (1.4.2006) by The Local Authorities (Capital Finance and Accounting) (Amendment) (England) Regulations 2006 (S.I. 2006/521), regs. 1(1), 5 (with reg. 1(3))
F9Reg. 12(6) added (1.4.2004) by The Local Authorities (Capital Finance and Accounting) (Amendment) (England) Regulations 2004 (S.I. 2004/534), regs. 1(1), 3(c)
Commencement Information
I6Reg. 12 in force at 1.1.2004 for specified purposes and 1.4.2004 in so far as not already in force, see reg. 1(1)
13.—(1) The local authority shall use capital receipts, which it has derived from the disposal of housing land, to pay interest to the Secretary of State in accordance with the following provisions of this regulation.
(2) Where the local authority—
(a)does not calculate the estimated amount; and
(b)does not pay part or all of the specified amount to the Secretary of State by the due date,
the local authority shall pay interest to the Secretary of State on the unpaid amount of the specified amount.
(3) Where the local authority—
(a)does calculate the estimated amount; and
(b)does not pay part or all of the estimated amount to the Secretary of State by the due date,
the local authority shall pay interest to the Secretary of State on the unpaid amount of the estimated amount.
(4) Where the local authority does not pay part or all of the amount of the balance, if any, to the Secretary of State by the balance payment date, the local authority shall pay interest to the Secretary of State on the unpaid amount of the balance.
(5) The interest shall be calculated on any unpaid amount at a rate of one per cent. above base rate on a day to day basis compounded with three-monthly rests.
(6) Where interest is payable by virtue of paragraph (2) or (3), the interest on the unpaid amount shall be calculated for the period starting on the day after the due date and ending on the date of payment of the unpaid amount.
(7) Where interest is payable by virtue of paragraph (4), the interest on the unpaid amount shall be calculated for the period starting on the day after the balance payment date and ending on the date of payment of the unpaid amount.
(8) The local authority shall pay to the Secretary of State any interest, payable in respect of any unpaid amount, on the date on which it pays the unpaid amount to him.
(9) In this regulation—
“the balance”, “the balance payment date”, “the due date”, “the estimated amount” and “the specified amount” have the same meaning as those terms have in regulation 12;
“base rate” means the base rate for the time being quoted by the reference banks or, where there is for the time being more than one such base rate, the rate which, when the base rate quoted by each bank is ranked in descending sequence of seven, is fourth in the sequence; and
“reference banks” means the seven largest persons for the time being who—
have permission under Part IV of the Financial Services and Markets Act 2000 (permission to carry on regulated activities) to accept deposits;
are incorporated in the United Kingdom and carrying on there a regulated activity of accepting deposits; and
quote a base rate in sterling,
and for the purpose of this definition the size of a person at any time is to be determined by reference to the gross assets denominated in sterling of that person, together with any subsidiary (as defined in section 736 of the Companies Act 1985 (“subsidiary”, “holding company” and “wholly owned subsidiary”)), as shown in the audited end-of-year accounts last published before that time.]
Textual Amendments
14.—(1) Subject to regulation 12(5) and [F11paragraphs (2) to (2C)], for the purposes of calculating the specified amount, the capital receipt in relation to the disposal of the interest in housing land shall be treated as reduced by—
(a)so much of the capital receipt as is applied by the local authority in meeting the administrative costs of and incidental to the disposal;
(b)the costs of expenditure incurred by the local authority in improving the housing land within the period of three years ending on the date of the disposal; and
(c)an amount, by which the authority determines that it shall be reduced, which may be an amount up to the value of its available capital allowance at the time the specified amount is calculated [F12; and
(d)an amount, by which the authority determines that it shall be reduced, which may be an amount up to the value of its available Social HomeBuy allowance at the time the specified amount is calculated.]
(2) Paragraph (1)(c) shall not apply to capital receipts which a local authority derives from the disposal of a dwelling where the disposal is made—
(a)under Part V of the Housing Act 1985 (right to buy)(4); or
(b)with a relevant consent, to a person who, when he acquires that dwelling, occupies or intends to occupy the dwelling as his only or principal home.
[F13(2A) Paragraph (1)(c) shall not apply to capital receipts, received by a local authority on or after 1st April 2006, which the local authority derives from the disposal of the authority’s rights and obligations as mortgagee of any dwelling, where that dwelling was disposed of by the authority—
(a)under Part V of the Housing Act 1985 (right to buy); or
(b)with a relevant consent, to a person who, when he acquires that dwelling, occupies or intends to occupy the dwelling as his only or principal home.
(2B) Paragraphs (1)(a) to (1)(c) shall not apply to capital receipts, received by a local authority on or after 1st April 2006, which the local authority derives from a Social HomeBuy disposal.
(2C) Paragraph (1)(d) shall only apply to capital receipts, received by a local authority on or after 1st April 2006, which the local authority derives from a Social HomeBuy disposal.]
(3) For the purposes of paragraph (2)(b), “relevant consent” means a consent to a disposal of land given by the Secretary of State to local authorities generally under section 32 or 43 of the Housing Act 1985 (disposal of land held for housing purposes)(5).
Textual Amendments
F11Words in reg. 14(1) substituted (1.4.2006) by The Local Authorities (Capital Finance and Accounting) (Amendment) (England) Regulations 2006 (S.I. 2006/521), regs. 1(1), 6(a) (with reg. 1(3))
F12Reg. 14(1)(d) and word inserted (1.4.2006) by The Local Authorities (Capital Finance and Accounting) (Amendment) (England) Regulations 2006 (S.I. 2006/521), regs. 1(1), 6(b) (with reg. 1(3))
F13Reg. 14(2A)-(2C) inserted (1.4.2006) by The Local Authorities (Capital Finance and Accounting) (Amendment) (England) Regulations 2006 (S.I. 2006/521), regs. 1(1), 6(c) (with reg. 1(3))
Commencement Information
I7Reg. 14 in force at 1.1.2004 for specified purposes and 1.4.2004 in so far as not already in force, see reg. 1(1)
15. For the purposes of regulation 14(1)(c), the value of a local authority’s available capital allowance at a particular time is the value of its total capital allowance at that time, as determined by the authority in accordance with regulation 16, less the total value of any amounts by which capital receipts have been treated as reduced by virtue of regulation 14(1)(c) prior to that time.
Commencement Information
I8Reg. 15 in force at 1.1.2004 for specified purposes and 1.4.2004 in so far as not already in force, see reg. 1(1)
16.—(1) [F14Subject to paragraphs (3) and (4),] for the purposes of regulation 15, a local authority’s total capital allowance is the total value of—
(a)the amount of any reduction determined by the authority before 1st April 2004 under regulation 104B(4) of the Local Authorities (Capital Finance) Regulations 1997 (disposal of land to assist in the provision of affordable housing)(6) where—
(i)no capital receipts were treated as reduced by that amount, for the purposes of section 59 of the Local Government and Housing Act 1989 (the reserved part of capital receipts)(7), before 1st April 2004; and
(ii)capital receipts could be treated as reduced by that amount under regulation 104B, for the purposes of that section, but for the repeal of that section on 1st April 2004(8).
(b)to the extent not included in sub-paragraph (a), the costs of expenditure incurred by the authority, for the purpose of facilitating the disposal of an interest in land, on—
(i)obtaining planning permission for the development of the land, or taking any other steps required to facilitate such development;
(ii)preparing the land for development;
(iii)acquiring an interest, easement, servitude or right in or over the land or adjoining land; or
(iv)obtaining the release of a restrictive covenant affecting the land,
where capital receipts derived from the disposal are capital receipts to which regulation 12 applies;
(c)to the extent not included in sub-paragraph (a) or (b), the amount of the contributions which the authority has made, or has decided to make but has not yet made, on or after 1st April 2004, towards the costs of the projects specified in regulations 17 and 18 by —
(i)constructing or improving dwellings, or providing dwellings by the conversion of a building or a part of a building;
(ii)making a gift of land;
(iii)paying a contribution, grant or subsidy under any power conferred on the authority under any enactment; or
(iv)giving consideration for any benefit that the authority has received, or will receive, by virtue of the project.
(2) For the purposes of paragraph (1)(c)(ii), the authority makes a gift of land where it transfers an interest in land and either —
(a)no consideration falls to be given for the transfer; or
(b)the value of the consideration that falls to be given for the transfer is less than the price that the interest transferred would realise at the date of the valuation if sold by the authority on the open market.
[F15(3) In the case of contributions which the authority has decided to make but has not yet made towards the costs of the project specified in regulation 17, sub-paragraph (c) of paragraph (1) shall only apply where the authority has decided that it will not use receipts derived from Social HomeBuy disposals to make those contributions.
(4) A local authority’s total capital allowance at a particular time shall not include the value of any amount which is included in the local authority’s total Social HomeBuy allowance, as determined by the authority at that time in accordance with regulation 16B.]
Textual Amendments
F14Words in reg. 16(1) inserted (1.4.2006) by The Local Authorities (Capital Finance and Accounting) (Amendment) (England) Regulations 2006 (S.I. 2006/521), regs. 1(1), 7(a) (with reg. 1(3))
F15Reg. 16(3)(4) added (1.4.2006) by The Local Authorities (Capital Finance and Accounting) (Amendment) (England) Regulations 2006 (S.I. 2006/521), regs. 1(1), 7(b) (with reg. 1(3))
Commencement Information
I9Reg. 16 in force at 1.1.2004 for specified purposes and 1.4.2004 in so far as not already in force, see reg. 1(1)
16A. For the purposes of regulation 14(1)(d), the value of a local authority’s available Social HomeBuy allowance at a particular time is the value of its total Social HomeBuy allowance at that time, as determined by the authority in accordance with regulation 16B, less the total value of any amounts by which capital receipts have been treated as reduced by virtue of regulation 14(1)(d) prior to that time.]
Textual Amendments
F16Regs. 16A, 16B inserted (1.4.2006) by The Local Authorities (Capital Finance and Accounting) (Amendment) (England) Regulations 2006 (S.I. 2006/521), regs. 1(1), 8 (with reg. 1(3))
16B.—(1) Subject to paragraph (2), for the purposes of regulation 16A, a local authority’s total Social HomeBuy allowance is the total value of—
(a)the amount of contributions which the authority has made, or has decided to make but has not yet made, on or after 1st April 2006, towards the costs of the project specified in regulation 17 by—
(i)acquiring dwellings or other land to be used for affordable housing;
(ii)preparing land for development for affordable housing;
(iii)constructing, improving or repairing dwellings to be used for affordable housing;
(iv)providing dwellings, to be used for affordable housing, by the conversion of a building or a part of a building;
(v)paying a contribution, grant or subsidy under any power conferred on the authority under any enactment; or
(vi)giving consideration for any benefit that the authority has received, or will receive, by virtue of the provision of affordable housing; and
(b)to the extent to which it is not included in sub-paragraph (a), the amount of the expenditure which the authority has incurred, or has decided to incur but has not yet incurred, on or after 1st April 2006, by—
(i)making a grant under section 129 of the Housing Act 1988 (schemes for payments to assist local housing authority tenants to obtain other accommodation) where the purpose of the grant is to assist a tenant or licensee of the authority to move out of a dwelling which is to be used for affordable housing once the tenant or licensee has moved out of it;
(ii)meeting the administrative costs of or incidental to a Social HomeBuy disposal;
(iii)to the extent to which it is not included in paragraph (ii), meeting the administrative costs of or incidental to the running of a scheme by the local authority to make Social HomeBuy disposals, regardless of whether the local authority makes particular disposals; or
(iv)where a Social HomeBuy disposal is made by the authority to a purchaser and that purchaser is required to pay rent to the authority in relation to any interest that the authority still has in the dwelling disposed of, meeting the administrative costs of or incidental to the collection of that rent.
(2) Sub-paragraphs (a) and (b) of paragraph (1) only apply where—
(a)in the case of contributions made or expenditure incurred, the local authority used capital receipts derived from Social HomeBuy disposals to make those contributions or incur that expenditure; or
(b)in the case of contributions or expenditure which the local authority has decided to make or incur but has not yet made or incurred, it has decided to use capital receipts derived from Social HomeBuy disposals to make those contributions or incur that expenditure;]
Textual Amendments
F16Regs. 16A, 16B inserted (1.4.2006) by The Local Authorities (Capital Finance and Accounting) (Amendment) (England) Regulations 2006 (S.I. 2006/521), regs. 1(1), 8 (with reg. 1(3))
17.—(1) [F17In these Regulations] “provision of affordable housing” means the provision of dwellings to meet the housing needs, as identified by the local authority, of persons on low incomes, whether provided by the authority or a social landlord registered under section 1 of the Housing Act 1996 (the register of social landlords)(9) [F18, and “affordable housing” shall be construed accordingly].
(2) For the purposes of [F19regulations 16(1)(c) and 16B(1)(a)], the provision of affordable housing is a specified project.
Textual Amendments
F17Words in reg. 17(1) substituted (1.4.2006) by The Local Authorities (Capital Finance and Accounting) (Amendment) (England) Regulations 2006 (S.I. 2006/521), regs. 1(1), 9(a) (with reg. 1(3))
F18Words in reg. 17(1) added (1.4.2006) by The Local Authorities (Capital Finance and Accounting) (Amendment) (England) Regulations 2006 (S.I. 2006/521), regs. 1(1), 9(b) (with reg. 1(3))
F19Words in reg. 17(2) substituted (1.4.2006) by The Local Authorities (Capital Finance and Accounting) (Amendment) (England) Regulations 2006 (S.I. 2006/521), regs. 1(1), 9(c) (with reg. 1(3))
Commencement Information
I10Reg. 17 in force at 1.1.2004 for specified purposes and 1.4.2004 in so far as not already in force, see reg. 1(1)
18.—(1) In this regulation —
“regeneration project” means any project for the carrying out of works or activities on any land where —
the land, or a building on the land, is vacant, unused, under-used, ineffectively used, contaminated or derelict; and
the works or activities are carried out in order to secure that the land or the building will be brought into effective use.
(2) For the purposes of regulation 16(1)(c), the undertaking of a regeneration project on land situated within the area of the local authority is a specified project.
Commencement Information
I11Reg. 18 in force at 1.1.2004 for specified purposes and 1.4.2004 in so far as not already in force, see reg. 1(1)
19.—(1) Subject to [F20paragraph (1A) and] regulation 12(5), for the purposes of calculating the amount specified in regulation 12(4)(a), a capital receipt derived from a disposal by a local authority of an interest in a dwelling, which meets the conditions specified in paragraph (2), shall be treated as reduced by an amount determined in accordance with paragraph (3).
[F21(1A) This regulation does not apply to a capital receipt derived from a Social HomeBuy disposal.]
(2) For the purposes of paragraph (1), the disposal meets the conditions specified in this paragraph if—
(a)prior to the disposal, an interest in the dwelling was disposed of by the local authority under Part V of the Housing Act 1985 (right to buy)(10) (“the initial sale”);
(b)within the period of five years beginning on the date of the initial sale, the local authority reacquired that interest in the dwelling (“the repurchase”);
(c)the disposal is made by the authority within the period of three years beginning on the date of the repurchase;
(d)the authority makes the initial sale and the disposal by, in each case—
(i)conveying the freehold interest in the dwelling;
(ii)granting a lease of the dwelling for a term of not less than 125 years;
(iii)assigning its entire leasehold interest in the dwelling; or
(iv)granting a shared ownership lease; and
(e)where the interest disposed of is a lease other than a shared ownership lease, the authority estimates that not less than 90 per cent. of the capital value of the lease has been, or is to be, received by it within one year of the date of the disposal.
(3) The amount of the reduction for the purposes of paragraph (1) is—
where—
X is the amount of expenditure incurred by the authority on the repurchase; and
Y is the amount of the administrative costs of and incidental to the repurchase.
(4) In this regulation, “shared ownership lease” means a lease of a dwelling granted on payment to the local authority of a premium which is calculated by reference to a percentage of the value of the dwelling or of the cost of providing it, and is not less than 25 per cent. of that value or cost.
Textual Amendments
F20Words in reg. 19(1) inserted (1.4.2006) by The Local Authorities (Capital Finance and Accounting) (Amendment) (England) Regulations 2006 (S.I. 2006/521), regs. 1(1), 10(a) (with reg. 1(3))
F21Reg. 19(1A) inserted (1.4.2006) by The Local Authorities (Capital Finance and Accounting) (Amendment) (England) Regulations 2006 (S.I. 2006/521), regs. 1(1), 10(b) (with reg. 1(3))
Commencement Information
I12Reg. 19 in force at 1.1.2004 for specified purposes and 1.4.2004 in so far as not already in force, see reg. 1(1)
20.—(1) Subject to [F22paragraph (1A) and] regulation 12(5), for the purposes of calculating the amount specified in regulation 12(4)(a), a capital receipt derived from a disposal by a local authority of an interest in a dwelling, which meets the conditions specified in paragraph (2), shall be treated as reduced by an amount determined in accordance with paragraph (3).
[F23(1A) This regulation does not apply to a capital receipt derived from a Social HomeBuy disposal.]
(2) For the purposes of paragraph (1), a disposal meets the conditions specified in this paragraph if—
(a)the authority makes the disposal by—
(i)conveying the freehold interest in the dwelling;
(ii)granting a lease of the dwelling for a term of not less than 125 years;
(iii)assigning its entire leasehold interest in the dwelling; or
(iv)granting a shared ownership lease; and
(b)where the interest disposed of is a lease other than a shared ownership lease, the authority estimates that not less than 90 per cent. of the capital value of the lease has been, or is to be, received by them within one year of the date of the disposal.
(3) The amount of the reduction for the purposes of paragraph (1) is—
where—
A is 47 per cent. of the amount, if any, by which the total net expenditure exceeds the sum of £50,000; and
B is the total amount, if any, by which capital receipts of the authority have already been reduced in the current year under this regulation.
(4) In this regulation—
“current year”, in relation to any capital receipts for a disposal, means—
in the case of notional capital receipts, the financial year in which the disposal is made; and
in any other case, the financial year in which the capital receipts are received;
“new town corporation”, “housing action trust” and “urban development corporation” have the same meaning as in section 4 of the Housing Act 1985 (other descriptions of authority)(11);
“preceding year”, in relation to any capital receipts, means the financial year immediately preceding the current year;
“shared ownership lease” has the same meaning as in regulation 19; and
“total net expenditure” is—
where—
C is the total amount of expenditure incurred by the local authority in the preceding year on acquiring relevant interests in land (including the administrative costs of and incidental to any such acquisitions); and
D is the total amount of reductions made by the authority under regulation 19 in the preceding year by virtue of expenditure on repurchases incurred in that year and administrative costs of and incidental to repurchases incurred in that year.
(5) In this regulation, an interest in land is a relevant interest if—
(a)it is the freehold interest or a leasehold interest in a dwelling and is not acquired pursuant to a compulsory purchase order;
(b)the freehold interest or a leasehold interest in the dwelling has previously been disposed of by the authority, another local authority, a new town corporation, a housing action trust or an urban development corporation; and
(c)the person from whom it is acquired is not a body of persons corporate or unincorporate.
Textual Amendments
F22Words in reg. 20(1) inserted (1.4.2006) by The Local Authorities (Capital Finance and Accounting) (Amendment) (England) Regulations 2006 (S.I. 2006/521), regs. 1(1), 11(a) (with reg. 1(3))
F23Reg. 20(1A) inserted (1.4.2006) by The Local Authorities (Capital Finance and Accounting) (Amendment) (England) Regulations 2006 (S.I. 2006/521), regs. 1(1), 11(b) (with reg. 1(3))
Commencement Information
I13Reg. 20 in force at 1.1.2004 for specified purposes and 1.4.2004 in so far as not already in force, see reg. 1(1)
20A.—(1) Subject to [F25paragraph (1A) and] regulation 12(5), for the purposes of calculating the amount specified in regulation 12(4), a capital receipt derived from a disposal by a local authority of an interest in housing land, which meets the conditions specified in paragraph (2), shall be treated as reduced by an amount determined in accordance with paragraph (3).
[F26(1A) This regulation does not apply to a capital receipt derived from a Social HomeBuy disposal.]
(2) For the purposes of paragraph (1), the disposal meets the conditions specified in this paragraph if—
(a)the local authority acquired the interest from a new town corporation;
(b)the new town corporation disposed of the interest pursuant to section 36 of the New Towns Act 1981 (functions of Commission) or regulations made under section 172(1) of the Local Government and Housing Act 1989 (transfer of new town housing stock); and
(c)the whole or part of the consideration to be given by the local authority for the acquisition of the interest from the new town corporation is required to be given on the disposal of the interest by the local authority.
(3) For the purposes of paragraph (1), the amount of the reduction is an amount equal to the value of the consideration that the local authority is required to give, as described in paragraph (2)(c), on making the disposal from which the capital receipt is derived.
(4) In this regulation, “new town corporation” means the Commission for the New Towns or a development corporation, within the meaning of the New Towns Act 1981.]
Textual Amendments
F24Reg. 20A inserted (16.12.2004) by The Local Authorities (Capital Finance and Accounting) (Amendment) (England) (No. 2) Regulations 2004 (S.I. 2004/3055), regs. 1(1), 4
F25Words in reg. 20A(1) inserted (1.4.2006) by The Local Authorities (Capital Finance and Accounting) (Amendment) (England) Regulations 2006 (S.I. 2006/521), regs. 1(1), 12(a) (with reg. 1(3))
21.—(1) [F27Subject to paragraph (1A),] where a local authority was a debt-free authority on 31st March 2004, for the purposes of calculating the specified amount, the capital receipt may be treated as reduced in accordance with paragraph (2).
[F28(1A) This regulation does not apply to a capital receipt derived from a Social HomeBuy disposal.]
(2) Subject to regulation 12(5) and paragraph (3), after the local authority has made any reductions to the amount of the capital receipt under [F29regulations 14 to 20A], the resulting amount of the capital receipt may be treated as further reduced—
(a)in relation to any capital receipt received in the financial year beginning on 1st April 2004, by up to 75%;
(b)in relation to any capital receipt received in the financial year beginning on 1st April 2005, by up to 50%; and
(c)in relation to any capital receipt received in the financial year beginning on 1st April 2006, by up to 25%.
(3) The total amount of—
(a)any reduction to a capital receipt calculated under paragraph (2), in relation to a financial year in which the capital receipt was received; and
(b)any reductions previously made under paragraph (2) in relation to that financial year,
shall not exceed the total amount of housing expenditure which the local authority, at the time when the reduction referred to in sub-paragraph (a) is calculated, has incurred in that financial year or has decided in that financial year to incur but has not yet incurred.
(4) In this regulation—
“housing expenditure” means expenditure incurred or to be incurred by the local authority when discharging functions in its capacity as local housing authority; and
“local housing authority” has the same meaning as in section 1 of the Housing Act 1985 (local housing authorities)(12).
Textual Amendments
F27Words in reg. 21(1) inserted (1.4.2006) by The Local Authorities (Capital Finance and Accounting) (Amendment) (England) Regulations 2006 (S.I. 2006/521), regs. 1(1), 13(a) (with reg. 1(3))
F28Reg. 21(1A) inserted (1.4.2006) by The Local Authorities (Capital Finance and Accounting) (Amendment) (England) Regulations 2006 (S.I. 2006/521), regs. 1(1), 13(b) (with reg. 1(3))
F29Words in reg. 21(2) substituted (1.4.2006) by The Local Authorities (Capital Finance and Accounting) (Amendment) (England) Regulations 2006 (S.I. 2006/521), regs. 1(1), 13(c) (with reg. 1(3))
Commencement Information
I14Reg. 21 in force at 1.1.2004 for specified purposes and 1.4.2004 in so far as not already in force, see reg. 1(1)
22.—(1) Subject to paragraphs (2) to (4), where on or after 1st April 2004 a local authority makes a disposal, other than a qualifying disposal [F30or a small scale disposal], of an interest in housing land—
(a)which is a disposal of the kind mentioned in section 9(1) (capital receipt) and the consideration for the disposal does not consist wholly of money payable to the authority; or
(b)in respect of which the authority receives otherwise than in the form of money any consideration which, if received in that form, would be a capital receipt under section 9,
the authority shall determine the amount (the “notional capital receipt”) which would have been the capital receipt if the consideration for the disposal had been wholly in money payable to the authority.
(2) Where money is payable to the authority in respect of the disposal, the notional capital receipt shall be determined by deducting the amount of that money from the amount which would have been the capital receipt if the consideration for the disposal had been wholly in money payable to the authority.
(3) Where the consideration for the disposal, or part of the consideration, consists of —
(a)the grant of a right to the local authority to nominate a person either to occupy any dwelling or to acquire the freehold of, or a leasehold interest in, any dwelling; or
(b)an undertaking given to the local authority to allow only a person of a particular description to occupy any dwelling or acquire the freehold of, or a leasehold interest in, any dwelling,
the amount of the notional capital receipt in respect of that consideration or that part of the consideration, as the case may be, shall be treated as nil.
(4) For the purposes of determining the notional capital receipt for a disposal, the consideration for the disposal shall be deemed to be received by the authority at the time that the authority makes the disposal.
(5) For the purposes of Chapter 1 of Part 1, a notional capital receipt shall be treated as a capital receipt and the amount specified in regulation 12(4) shall be calculated accordingly.
Textual Amendments
F30Words in reg. 22(1) inserted (16.12.2004) by The Local Authorities (Capital Finance and Accounting) (Amendment) (England) (No. 2) Regulations 2004 (S.I. 2004/3055), regs. 1(1), 5
Commencement Information
I15Reg. 22 in force at 1.1.2004 for specified purposes and 1.4.2004 in so far as not already in force, see reg. 1(1)
23. Capital receipts may only be used for one or more of the following purposes—
(a)to meet capital expenditure;
(b)to repay the principal of any amount borrowed;
(c)to pay a premium charged in relation to any amount borrowed;
(d)to meet any liability in respect of credit arrangements, other than any liability which, in accordance with proper practices, must be charged to a revenue account;
(e)to meet the administrative costs of or incidental to a disposal of an interest in housing land; or
(f)to make a payment to the Secretary of State under regulation 12 or 13 [F31; or]
[F32(g)where the capital receipts are derived from a Social HomeBuy disposal—
(i)to make contributions towards the costs of the provision of affordable housing by any of the ways specified in paragraphs (i) to (vi) of regulation 16B(1)(a); or
(ii)to incur expenditure by any of the ways specified in paragraphs (i) to (iv) of regulation 16B(1)(b).]
Textual Amendments
F31Word in reg. 23(f) inserted (1.4.2006) by The Local Authorities (Capital Finance and Accounting) (Amendment) (England) Regulations 2006 (S.I. 2006/521), regs. 1(1), 14(a) (with reg. 1(3))
F32Reg. 23(g) added (1.4.2006) by The Local Authorities (Capital Finance and Accounting) (Amendment) (England) Regulations 2006 (S.I. 2006/521), regs. 1(1), 14(b) (with reg. 1(3))
Commencement Information
I16Reg. 23 in force at 1.1.2004 for specified purposes and 1.4.2004 in so far as not already in force, see reg. 1(1)
See section 16 (“capital expenditure”) and regulations 25 and 26.
1985 c. 68; Schedule 6A was inserted by section 117(2) of, and Schedule 16 to, the Leasehold Reform, Housing and Urban Development Act 1993 (c. 28). There are amendments to Schedule 6A that are not relevant to these Regulations.
See regulation 22 for meaning of “notional capital receipt”.
Sections 32 and 43 were amended by paragraphs 38 and 39 of Schedule 17 to the Housing Act 1988 (c. 50), section 227 of, and Part IX of Schedule 19 to, the Housing Act 1996 (c. 52) and S.I. 1997/74. Section 43 was also amended by section 132 of the Housing Act 1988 (c. 50), section 194(2) of, and Schedule 12 to, the Local Government and Housing Act 1989 (c. 42) and section 78 of, and paragraph 24(1) of Schedule 10 to, the Environment Act 1995 (c. 25).
S.I. 1997/319; regulation 104B was inserted by S.I. 2003/43.
1996 c. 52; section 1 was amended by section 140 of, and paragraphs 82(1)(a) and 83 of Schedule 16 and Part VI of Schedule 18 to, the Government of Wales Act 1998 (c. 38).
Section 4 was amended by section 62(7) of the Housing Act 1988 (c. 50). There are other amendments to section 4 that are not relevant to these Regulations.
1985 c. 68; there are amendments to section 1 which are not relevant to these Regulations.
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