The Local Authorities (Capital Finance and Accounting) (Amendment) (England) Regulations 2004

Expenditure to be capital expenditure

5.—(1) In regulation 25 of the Principal Regulations (expenditure to be capital expenditure)—

(a) in sub-paragraph (d) of paragraph (1)—

(i) before “the acquisition of”, there shall be inserted “subject to paragraph (3),”; and

(ii) the word “and” shall be omitted;

(b) after sub-paragraph (e) of paragraph (1), there shall be added—

“; and

(f) the payment of any levy by a local authority under section 136 of the Leasehold Reform Housing and Urban Development Act 1993 (levy on disposals)(1)”; and

(c) after paragraph (2), there shall be added—

“(3) Where the expenditure referred to in paragraph (1)(d) is—

(a) an investment in a money market fund; or

(b) the acquisition of loan capital in—

(i) a multilateral development bank; or

(ii) a financial institution that is guaranteed by the United Kingdom Government,

It shall not be treated as being capital expenditure by virtue of this regulation.”.

(1)

1993 c. 28; section 136 was amended by section 109 of the Finance Act 1997 (c. 16).