PART II

Interpretation

3.—(1) In this Part—

“net capital residue” means the direct capital receipts of the Residuary Body in the financial year in question other than those receipts which are attributable to—

(a) the disposal of relevant land or other property purchased by that Body; or

(b) repayments of grants and advances of a capital nature in respect of—

(i) grants or advances made by that Body; and

(ii) grants or advances made to authorities to whom Part VIII of the 1980 Act applies or to the London Transport Executive,

less the amount payable in that year by way of reimbursable capital money.

(2) For the purposes of this Part, the population of the area of a rating authority shall be taken to be the number estimated by the Registrar General and certified by him to the Secretary of State by reference to the 30th June which falls 21 months before the beginning of the financial year in question.

Additions to net capital receipts

4.—(1) For the purposes of section 72(3) of the 1980 Act, each rating authority’s net capital receipts for each financial year commencing with the financial year beginning 1st April 1986 shall be treated as if they included an amount determined in accordance with the formula—

where—

• S equals the population of the area of the rating authority in question;

• T equals the population of the area of all the rating authorities;

• A equals that part of the net capital residue for the financial year in question which does not consist of housing receipts;

• Y equals that part of the amount of prescribed expenditure first specified for that year in accordance with section 72(1) of the 1980 Act in relation to the rating authority in question which is referable to the Housing Investment Programme;

• Z equals the aggregate of those parts of the amounts of prescribed expenditure so specified in relation to each of the rating authorities which are referable to the Housing Investment Programme; and

• B equals that part of the net capital residue for that year which consists of housing receipts.

(2) For the purposes of section 72(3) of the 1980 Act, each rating authority’s net capital receipts for the financial year ending 31st March 1987 shall be treated as if they included (in addition to any amount ascertained in accordance with paragraph (1)) an amount determined in accordance with the formula—

where—

• S and T have the same values as in paragraph (1) and C is an amount equal to that which, if the abolished council had been an authority to whom Part VIII of the 1980 Act applied,

  (a)

  would have been regarded as capital receipts for the purposes of that Part of that Act; and

  (b)

  immediately before 1st April 1986 remained unused for the purpose of authorising prescribed expenditure by that council, less the amount which would have been attributable to the functions of the abolished council as a local education authority.

(3) For the purposes of section 72(3) of the 1980 Act, the net capital receipts of the Inner London Education Authority for the financial year ending 31st March 1987 shall be treated as if they included the amount last mentioned in paragraph (2).

(4) Regulations under sections 72(3)(d) and 75 of the 1980 Act apply in relation to amounts to be included in the net capital receipts of any authority by virtue of this article as they apply to other receipts of the authority.