The Local Authorities (Capital Finance and Accounting) (England) Regulations 2003

[F1 Interest on loans given by local authorities E+W

30D.— (1) Where—

(a) on or after 1st April 2007, a local authority gives a loan to a person;

(b) the authority, in accordance with proper practices, includes an amount in respect of that loan in its balance sheet at the end of the financial year in which the loan is given (“the loan year”); and

(c) the amount referred to in sub-paragraph (b) is less than the amount of the loan outstanding at the end of the loan year,

paragraph (3) shall apply.

(2) Where—

(a) a local authority gave a loan to a person before 1st April 2007 and the whole or any remaining part of the loan is outstanding on or after 1st April 2007;

(b) the authority, in accordance with proper practices, includes an amount in respect of that loan in its balance sheet at the end of the financial year which began on 1st April 2007 (“the 2007 financial year”); and

(c) the amount referred to in sub-paragraph (b) is less than the amount of the loan outstanding at the end of the 2007 financial year,

paragraph (3) shall apply.

(3) Where this paragraph applies, the amount of the interest, if any, in respect of the loan, which the local authority credits to its revenue account—

(a) (i) where the loan was given on or after 1st April 2007, in the loan year; or

(ii) where the loan was given before 1st April 2007, in the 2007 financial year; and

(b) in each subsequent year until, and including, the financial year in which the whole or any remaining part of the loan is fully repaid,

shall be the amount of the interest, if any, which it is due to receive in that year in accordance with the loan agreement for that loan.]

[F2 (4) In relation to any person or body which is a local authority for the purposes of section 21 by virtue of subsection (6)(b), (e), (g), (h), (k) or (l) of that section, this regulation has effect as if—

(a) the references in paragraphs (1)(a), (2)(a) and (b) and (3)(a) to “1st April 2007” were references to “1st April 2015”; and

(b) the references in paragraphs (2)(c) and (3)(a) to “2007 financial year” were references to “2015 financial year”.]

Textual Amendments

F1 Regs. 30B-30D inserted (1.4.2007) by The Local Authorities (Capital Finance and Accounting) (Amendment) (England) Regulations 2007 (S.I. 2007/573), regs. 1(1), 6

F2 Reg. 30D(4) inserted (1.4.2015) by The Local Authorities (Capital Finance and Accounting) (England) (Amendment) Regulations 2015 (S.I. 2015/341), regs. 1, 2(6)