Airports Act 1986

21 Capital controls relating to investment in public airport companies by local authorities in England and Wales

(1) Where a local authority dispose of any securities of a public airport company (whether it continues to be such a company after the disposal or not)—

(a) any amount received by the authority in respect of the disposal shall be treated for the purposes of section 72 of the 1980 Act (expenditure which authorities may make) as a receipt of the authority which, by virtue of section 75(1) of that Act, is a capital receipt of the authority for the purposes of Part VIII of that Act (capital expenditure of local authorities etc.), but

(b) only the relevant sum shall be taken into account under section 72(3)(d) of that Act.

(2) In subsection (1) " the relevant sum ", in relation to an amount falling within paragraph (a) of that subsection, means—

(a) three-tenths of that amount, or

(b) if regulations are made for the purposes of section 72(3)(d) of the 1980 Act which prescribe a proportion other than three-tenths in relation to disposals falling within subsection (1), the proportion of that amount so prescribed.

(3) Where a local authority incur any expenditure in respect of the acquisition of any securities—

(a) of a public airport company, or

(b) of any company which, as a result of the acquisition by the authority of those securities, becomes a public airport company,

the amount of that expenditure shall, in so far as it is not prescribed expenditure of the authority for the purposes of Part VIII of the 1980 Act by virtue of Schedule 12 to that Act, be treated as prescribed expenditure of the authority for those purposes.

(4) In this section and section 22 "the 1980 Act" means the [1980 c. 65.] Local Government, Planning and Land Act 1980; and this section and section 22 apply to England and Wales only.