The Local Authorities (Capital Finance and Accounting) (England) Regulations 2003

PART 3 E+W CREDIT ARRANGEMENTS

TRANSACTIONS WHICH ARE NOT CREDIT ARRANGEMENTS E+W

Liabilities that do not arise from capital expenditure E+W

3.—(1) The liabilities of a local authority specified in paragraph (2) are liabilities specified for the purposes of section 7(3)(c) (exclusion of certain liabilities from definition of “qualifying liabilities”).

(2) The liabilities specified for the purposes of paragraph (1) are liabilities that do not arise from a transaction which results in the local authority being required, in accordance with proper practices, to recognise a fixed asset in any balance sheet.

Commencement Information

I1 Reg. 3 in force at 1.1.2004 for specified purposes and 1.4.2004 in so far as not already in force, see reg. 1(1)

Retirement benefits E+W

4.—(1) Liabilities for retirement benefits appropriated to a pension reserve in accordance with proper practices are liabilities specified for the purposes of section 7(3)(c).

(2) For the purposes of paragraph (1) and regulation 30, “retirement benefits” means benefits payable pursuant to—

(a) section 31 of the London County Council (General Powers) Act 1921 (compensation to persons in Council’s service on abolition of office)(1);

(b) the “principal civil service pension scheme” within the meaning of section 2(10) of the Superannuation Act 1972 (further provisions relating to superannuation schemes under section 1)(2) and for the time being in force;

(c) the Police Pensions Regulations 1987(3);

(d) the Firemen’s Pension Scheme Order 1992(4);

(e) the Teachers (Compensation for Redundancy and Premature Retirement) Regulations 1997(5);

(f) the Local Government Pension Scheme Regulations 1997(6);

(g) the Local Government (Early Termination of Employment) (Discretionary Compensation) (England and Wales) Regulations 2000(7); and

(h) any other regulations made under section 24 of the Superannuation Act 1972 (compensation for loss of office etc.)(8).

Commencement Information

I2 Reg. 4 in force at 1.1.2004 for specified purposes and 1.4.2004 in so far as not already in force, see reg. 1(1)

SUPPLEMENTARY PROVISION E+W

Varied transactions E+W

5.  For the purposes of Chapter 1 of Part 1 (capital finance etc.), a local authority shall be taken to have entered into a credit arrangement where—

(a) on or after 1st April 2004, it enters into a transaction (“the new transaction”) which varies a transaction entered into previously, whether before, on or after 1st April 2004 (“the earlier transaction”);

(b) the earlier transaction did not result in the local authority being taken to have entered into a credit arrangement; and

(c) the local authority would, if it had entered into the earlier transaction as varied by the new transaction on—

(i) the date on which the earlier transaction was entered into; or

(ii) if later, 1st April 2004,

be taken to have entered into a credit arrangement,

and the date on which it is taken to have entered into the credit arrangement by virtue of this regulation is the date on which it enters into the new transaction.

Commencement Information

I3 Reg. 5 in force at 1.1.2004 for specified purposes and 1.4.2004 in so far as not already in force, see reg. 1(1)

COST OF CREDIT ARRANGEMENTS E+W

Calculation of cost of credit arrangements E+W

6.  For the purposes of section 8(2) (entry into a credit arrangement or variation to be treated as the borrowing of an amount equal to the cost of the arrangement or variation), the cost of a credit arrangement or variation of a credit arrangement shall be the amount of the liability in respect of that arrangement or variation which is shown, in accordance with proper practices, in the authority’s accounts.

Commencement Information

I4 Reg. 6 in force at 1.1.2004 for specified purposes and 1.4.2004 in so far as not already in force, see reg. 1(1)

(1)

1921 c. l; section 31 was amended by S.I. 1974/520, S.I. 1977/1341 and section 40 of the Greater London Council (General Powers) Act 1968 (c. xxxix).

(2)

1972 c. 11.

(3)

S.I. 1987/257, to which there are amendments not relevant to these Regulations.

(4)

S.I. 1992/129, to which there are amendments not relevant to these Regulations.

(5)

S.I. 1997/311, to which there are amendments not relevant to these Regulations.

(6)

S.I. 1997/1612, to which there are amendments not relevant to these Regulations.

(7)

S.I. 2000/1410, to which there are amendments not relevant to these Regulations.

(8)

Section 24 was amended by section 13(1) of, and paragraph 10 of Schedule 2 to, the Police Pensions Act 1976 (c. 35).