PART 5E+WSUPPLEMENTARY

GuidanceE+W

24.  In carrying out its functions under Chapter 1 of Part 1, a local authority shall have regard to the code of practice contained in the document entitled “Treasury Management in the Public Services: Code of Practice and Cross-Sectoral Guidance Notes” published by CIPFA, as amended or reissued from time to time(1).

Commencement Information

I1Reg. 24 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)

Expenditure to be capital expenditureE+W

25.—(1) For the purposes of Chapter 1 of Part 1 the following expenditure of a local authority, incurred on or after 1st April 2004, shall be treated as being capital expenditure insofar as it is not capital expenditure by virtue of section 16(1) —

(a)expenditure incurred on the acquisition or preparation of a computer program, including expenditure on the acquisition of a right to use the program, if the authority acquire or prepare the program for use for a period of at least one year for any purpose relevant to its functions;

(b)subject to paragraph (2), the giving of a loan, grant or other financial assistance to any person, whether for use by that person or by a third party, towards expenditure which would, if incurred by the authority, be capital expenditure;

(c)the repayment of any grant or other financial assistance given to the local authority for the purposes of expenditure which is capital expenditure;

(d)[F1subject to paragraph (3),] the acquisition of share capital or loan capital in any body corporate; F2...

(e)expenditure incurred on works to any land or building in which the local authority does not have an interest, which would be capital expenditure if the local authority had an interest in that land or building [F3; and

(f)the payment of any levy by a local authority under section 136 of the Leasehold Reform Housing and Urban Development Act 1993 (levy on disposals)].

(2) Where the expenditure referred to in paragraph (1)(b) is a loan given by a parish council or charter trustees to any person, it shall not be treated as being capital expenditure by virtue of this regulation.

[F4(3) Where the expenditure referred to in paragraph (1)(d) is—

(a)an investment in a money market fund; or

(b)the acquisition of loan capital in—

(i)a multilateral development bank; or

(ii)a financial institution that is guaranteed by the United Kingdom Government,

It shall not be treated as being capital expenditure by virtue of this regulation.]

Expenditure not to be capital expenditureE+W

26.  Expenditure incurred by a local authority on the giving of loans, grants or other financial assistance—

(a)to an officer of the authority pursuant to the terms and conditions of his employment; or

(b)in connection with the appointment of a person as an officer of the authority, to that person,

in so far as, apart from this regulation, it would be capital expenditure, shall be treated for the purposes of Chapter 1 of Part 1 as not being capital expenditure.

Commencement Information

I3Reg. 26 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)

The current issue of this document was published in London in 2001. ISBN 0 85299 943 7.