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

Calculations by Designated Authorities

7.  For the purposes of item P, the amount of each relevant credit arrangement shall be determined in accordance with the formula—

where—

• R is the amount which is the aggregate of—

  (a)

  any amount of the usable part of capital receipts which the relevant authority applied in relation to the relevant credit arrangement as mentioned in paragraph (b) of subsection (3) of section 50 of the 1989 Act (credit cover for credit arrangements); and

  (b)

  any amount set aside from a revenue account by that authority in relation to that credit arrangement as mentioned in paragraph (c) of that subsection;

• S is the aggregate of amounts determined in respect of notional interest on the relevant credit arrangement for the purposes of paragraph 15(1)(b) of Schedule 3 to the 1989 Act(1) for each financial year (“relevant year”) beginning with the financial year immediately following the financial year in which the relevant credit arrangement was entered into (“the first year”) and ending with the final year;

• T is the aggregate of principal amounts for each relevant year; and, for these purposes, a principal amount for a relevant year is so much of the amount in respect of principal referred to in paragraph 15(1)(a) of Schedule 3 to the 1989 Act(2) for that year as the designated authority and the participant authority agree is attributable to the relevant credit arrangement or, in default of such agreement, as the designated authority determines to be so attributable;

• U is the amount which is the aggregate of—

  (a)

  the amount by which the total of amounts shown in the accounts of the relevant authority for each relevant year as amounts set aside from a revenue account as provision to meet credit liabilities in relation to the relevant credit arrangement (otherwise than in accordance with a determination under paragraph (c) of subsection (3) of section 50 of the 1989 Act) exceeds the amount which is the principal amount for that year for the purposes of item T above; and

  (b)

  the total of amounts shown in such accounts as the usable part of capital receipts applied as provision to meet credit liabilities in relation to the relevant credit arrangement (otherwise than as mentioned in paragraph (b) of that subsection); and

• V is the aggregate of amounts shown in the accounts of the relevant authority for each relevant year as amounts applied under section 64(1)(b) of the 1989 Act in respect of the relevant credit arrangement.

(1)

Amounts in respect of notional interest are determined in accordance with paragraph 19 of Schedule 3 to the 1989 Act.

(2)

Provision in respect of amounts in respect of principal for the purposes of that calculation is made in Part VIII of the Local Authorities (Capital Finance) Regulations 1990 (S.I.1990/432) (as amended by S.I.1993/520 and 1994/553).