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

Pooling of receipts from disposals of housing land

12.—(1) This regulation applies to capital receipts which—

(a) a local authority derives from the disposal of an interest in housing land other than a disposal which is a qualifying disposal; and

(b) on or after 1st April 2004, have been received by the local authority.

(2) Subject to paragraph (3), where this regulation applies, the local authority shall use capital receipts to pay the amount specified in paragraph (4) (“the specified amount”) to the Secretary of State on or before—

(a) the last day of the calendar month immediately following—

(i) 31st March;

(ii) 30th June;

(iii) 30th September; or

(iv) 31st December,

whichever of those is the earliest date following the day on which the authority receives the capital receipt; or

(b) if later, such date as is notified to the local authority by the Secretary of State.

(3) Where it is not reasonably practicable for the local authority to calculate the specified amount by the date on or before which it is payable under paragraph (2) (“the due date”)—

(a) the amount to be paid by the due date shall be instead the local authority’s best estimate of the specified amount (“the estimated amount”);

(b) the local authority shall notify the Secretary of State in writing, at the time of payment, that it is paying the estimated amount rather than the specified amount;

(c) the local authority shall—

(i) provide the Secretary of State with a statement of the specified amount, the estimated amount, and the amount which is equal to the specified amount less the estimated amount already paid (“the balance”); and

(ii) if the balance is positive, pay that amount to the Secretary of State,

by no later than 30th June in the financial year immediately following the financial year in which the capital receipt was received; and

(d) if the balance is negative, the Secretary of State shall repay to the local authority, as soon as reasonably practicable after he receives the local authority’s statement, the amount it paid in excess of the specified amount.

(4) Subject to reductions made under regulations 14 to 21, the specified amount is an amount equal to—

(a) 75 per cent of the capital receipt in relation to the disposal of a dwelling; and

(b) 50 per cent of the capital receipt in relation to the disposal of any other interest in housing land.

(5) The total amount of any reductions made to the capital receipt for a disposal under regulations 14 to 21, shall not exceed the amount of that capital receipt.