PART 4CAPITAL RECEIPTS

POOLING OF RECEIPTS

F1Interest on late payments13

1

The local authority must use capital receipts, which it derived from the disposal of housing land, to pay interest to the Secretary of State in accordance with the following provisions of this regulation.

2

Where the local authority does not pay part or all of the poolable amount to the Secretary of State by the due date, the local authority shall pay interest to the Secretary of State on the unpaid part amount of the poolable amount.

3

The interest shall be calculated on any unpaid amount at F2the applicable rate on a day to day basis compounded with F3yearly rests.

4

Where interest is payable by virtue of paragraph (2), the interest on the unpaid amount shall be calculated for the period starting on the day after the due date and ending on the date of the payment of the unpaid amount.

5

The local authority must pay to the Secretary of State any interest, payable in respect of any unpaid amount, on the date on which it pays the unpaid amount.

6

In this regulation—

  • F4“applicable rate” means whichever is the higher of—

    1. a

      1%; and

    2. b

      1% above base rate;

  • “base rate” means the base rate for the time being quoted by the reference banks or, where there is for the time being more than one such rate, the rate which, when the base rate quoted by each bank is ranked in descending sequence of seven, is fourth in the sequence; and

  • “reference banks” means the seven largest persons for the time being who—

    1. i

      have permission under Part IV of the Financial Services and Markets Act 2000 (permission to carry on regulated activities) to accept deposits;

    2. ii

      are incorporated in the United Kingdom and carry on there a regulated activity of accepting deposits; and

    3. iii

      quote a base rate in sterling,

  • and for the purpose of this definition the size of any person at any time is to be determined by reference to the gross assets denominated in sterling by that person, together with any subsidiary (as defined in section 1159 of the Companies Act 2006), as shown in the audited end-of-year accounts last published before that time.