PART 3CAPITAL RECEIPTS

SUMS TO BE TREATED AS CAPITAL RECEIPTS

Repayment of loan etc. to a local authority6

1

For the purposes of Chapter 1 of Part 1, the following sums must be treated as capital receipts—

a

the repayment to a local authority of, or payment to a local authority in respect of, any grant or other financial assistance given by the local authority of such a description that, if the giving of that financial assistance had been expenditure incurred at the time of the repayment or payment, it would have constituted capital expenditure; and

b

the repayment to a local authority of the principal of an advance made by the local authority for such a purpose that, if the making of the advance had been expenditure incurred at the time of the repayment, it would have constituted capital expenditure.

2

For the purposes of paragraph 1(a), sums received by a local authority in connection with the repayment of any grants or other financial assistance —

a

to an officer of the authority pursuant to the terms and conditions of that officer’s 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 a receipt for capital purposes, shall not be expenditure for capital purposes.