PART 4CAPITAL RECEIPTS

SUMS NOT TO BE TREATED AS CAPITAL RECEIPTS

Operating and finance leases11.

A sum received by a local authority—

(a)

under any arrangement which is treated, in accordance with proper practices, as an operating lease or a finance lease;

(b)

which, apart from this regulation, would be a capital receipt; and

(c)

which, in accordance with proper practices, is to be credited to a revenue account,

shall not be treated for the purposes of Chapter 1 of Part 1 as a capital receipt.