Part I Social rented sector

Chapter III Grants and other financial matters

Treatment of disposal proceeds

24 The disposal proceeds fund.

(1)

A registered social landlord shall show separately in its accounts for any period ending after the coming into force of this section its net disposal proceeds.

(2)

The net disposal proceeds of a registered social landlord are—

(a)

the net proceeds of sale received by it in respect of any disposal of land to a tenant—

(i)

in pursuance of the right conferred by section 16 (right of tenant to acquire dwelling), or

(ii)

in respect of which a grant was made under section 21 (purchase grant in respect of other disposals);

(b)

payments of grant received by it under section 20 or 21 (purchase grant);

(c)

where any such grant has been paid to it, any repayments of discount in respect of which the grant was given; and

(d)

such other proceeds of sale or payments of grant (if any) as the F1Relevant Authority may from time to time determine.

(3)

The net proceeds of sale means the proceeds of sale less an amount calculated in accordance with a determination by the F1Relevant Authority.

(4)

The disposal proceeds shall be shown in a fund to be known as a disposal proceeds fund.

(5)

The method of constituting the fund and showing it in the landlord’s accounts shall be as required by determination of the F1Relevant Authority under paragraph 16 of Schedule 1 (general requirements as to accounts).

(6)

Interest shall be added to the fund in accordance with a determination made by the F1Relevant Authority.

(7)

Where this section applies in relation to the proceeds of sale arising on a disposal, section 27 below (recovery, &c. of social housing grants) and section 52 of the M1Housing Act 1988 (recovery, &c. of grants under that Act and earlier enactments) do not apply.