Local Government Act 1985

77 Treatment and distribution of capital and other money

(1) The Secretary of State may by order provide—

(a) that such part (if any) of any capital money received by a residuary body as is specified in the order shall be treated for the purposes of Part VIII of the [1980 c. 65.] Local Government, Planning and Land Act 1980 (capital expenditure of local authorities) as, or as forming part of, the capital receipts of any authority to which this subsection applies and which is specified in the order ;

(b) for the payment by a residuary body to any such authority of such part (if any) of any capital money received by that body as is specified in the order.

(2) Subsection (1) above applies to any rating authority in the area for which the residuary body in question .is established and to any new authority established for (or for an area which includes or is included in) that area.

(3) An order under subsection (1) above may—

(a) apply only to capital money of a particular description or make different provision in relation to capital money of different descriptions ;

(b) apply only to some of the authorities to which that subsection applies or make different provision in relation to different authorities; and

(c) provide for the said Part VIII to apply in relation to any money which is the subject of an order under that subsection to such extent only or with such modifications as may be provided by the order.

(4) A residuary body may in any financial year distribute among the rating authorities in the area for which it is established any money (other than capital money) for the time being in the hands of that body; and any such distribution shall be in the same proportions as those that would apply to a levy made by it on those authorities in respect of that year.

(5) In this section " capital money" means money of such description as may be specified for the purposes of this section by an order made by the Secretary of State.