PART 5SUPPLEMENTARY
Expenditure to be capital expenditureI125
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;
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
F8ea
expenditure incurred on the acquisition, production or construction of assets for use by, or disposal to, a person other than the local authority which would be capital expenditure if those assets were acquired, produced or constructed for use by the local authority; 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.
F43
Where the expenditure referred to in paragraph (1)(d) is—
F14a
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F10b
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F5c
F7d
the acquisition of shares in an investment scheme approved by the Treasury under section 11(1) of the Trustee Investments Act 1961 (local authority investment schemes),F13or
e
an investment in a relevant UCITS,
it shall not be treated as being capital expenditure by virtue of this regulation.