The Local Government Changes For England (Property Transfer and Transitional Payments) Regulations 1995

Calculations by Designated Authorities

1.—(1) In this Schedule—

“the participant authority” means the participant authority in relation to which calculations are being made in accordance with this Schedule;

“relevant area”, in relation to the participant authority, means any area which, immediately before the reorganisation date, was the whole or part of the area of the relevant authority and which, on and after that date, is the whole or part of the area of the participant authority (whether or not it was also the whole or part of that authority’s area immediately before that date);

“relevant capital receipts” means the usable part of capital receipts (within the meaning of Part IV of the 1989 Act) which has not been applied as mentioned in section 60(2) of that Act;

“relevant provision” means any amount set aside by the relevant authority as mentioned in section 41(3)(b) of the 1989 Act (other than an amount set aside in respect of debts owed to the authority or stocks) and not used before the reorganisation date; and

“transferred”, in relation to any property, rights or liabilities, means transferred by virtue of a provision of Part II of these Regulations, a determination under regulation 19 or a provision of any other relevant instrument.

(2) In this Schedule—

(a) any reference to property does not include property held by an authority, as sole trustee, exclusively for charitable purposes and any reference to rights or liabilities does not include rights or liabilities in respect of such property;

(b) any reference to an item in the final accounts, or its book value or net book value, is a reference to the item, or its book value or net book value, on the day immediately before the reorganisation date as shown in the final accounts;

(c) in the case of a relevant authority which is a relinquishing authority in relation to a transferred area and a billing authority (within the meaning of the 1992 Act), any reference to an item in the final accounts does not include any item which relates to the collection fund maintained by the authority pursuant to section 89 of the Local Government Finance Act 1988(1);

(d) any reference to the item of account which relates to debts owed by the relevant authority does not include so much (if any) of that item as relates to credit arrangements entered into by that authority;

(e) any reference to the appropriate amount or appropriate value of any item in the final accounts is a reference to such amount or value as may be agreed between the designated authority and the participant authority or, failing such agreement, determined by the designated authority; and

(f) references to subsection (3) of section 50 of the 1989 Act include references to that subsection as applied by section 51(4) of that Act (variations of credit arrangements).

(3) Where—

(a) a calculation in accordance with a formula in this Schedule requires an amount to be found by reference to an item of account which relates to any rights or liabilities of the relevant authority which have been transferred to the designated authority or the participant authority; and

(b) the rights or liabilities have been transferred jointly and severally to both of those authorities or to either of those authorities and another participant authority or the Residuary Body,

the amount or value of the item of account to be ascribed to the participant authority or the designated authority for the purposes of the calculation shall be such proportion of the amount or value of the item as may be agreed by all the authorities to whom the rights or liabilities have jointly and severally been transferred or, in default of such agreement, as the designated authority shall determine.

(4) An amount ascribed to an item of a formula in accordance with the following paragraphs of this Schedule may be nil or, as the case may be, a negative amount.

The first calculation is—

where—

• A is the amount which is the aggregate of—

  (a)

  the appropriate amount of so much of any financial reserves in the final accounts as is attributable to amounts set aside—

  (i)

  in connection with any property which has been transferred to the participant authority; or

  (ii)

  for the purpose of meeting any liabilities which have been so transferred; and

  (b)

  so much of any relevant provisions in those accounts as is attributable to amounts which were set aside or applied in that connection or for that purpose;

• B is the amount found by subtracting the aggregate of—

  (a)

  the appropriate value of so much of the item in the final accounts which relates to debts owed to the relevant authority as is attributable to debts the right to which has been transferred to the participant authority; and

  (b)

  the appropriate value of so much of the item in those accounts which relates to stocks as is attributable to property which has been so transferred;

• from the aggregate of—

  (a)

  the net book value of debts the right to which has been transferred to the participant authority; and

  (b)

  the net book value of stocks which are attributable to property which has been so transferred;

• C is an amount determined in accordance with paragraph 3 below;

• D is the amount calculated by the relevant authority as its council tax base for the final year in accordance with the relevant rules; and

• d is the designated authority’s estimate of so much of that amount as relates to any relevant area.

(1)

1988 c. 41.