PART 6CAPITAL RECEIPTS
Sums not to be treated as capital receipts
Capital receipts not exceeding £5,00016
1
A sum received by a council which, apart from this regulation, would be a capital receipt by virtue of section 20(1) shall not be treated for the purposes of Part 1 as a capital receipt if the aggregate of all sums received or to be received by the council in respect of the disposal of an interest in a capital asset, for which the sum is paid, does not exceed £5,000.
2
A sum received by a council which, apart from this regulation, would be treated as a capital receipt by virtue of regulation 14, shall not be treated for the purposes of Part 1 as a capital receipt if the aggregate of all sums received or to be received by the council as repayment of a loan, grant or other financial assistance, for which the sum is paid, does not exceed £5,000.
Operating and finance leases17
A sum received by a council—
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 the general fund,
shall not be treated for the purposes of Part 1 as a capital receipt.
Use of capital receipts18
Capital receipts may only be used for one or more of the following purposes—
a
to meet capital expenditure;
b
to repay the principal of any amount borrowed;
c
to pay a premium charged in relation to any amount borrowed;
d
to meet any liability in respect of credit arrangements, other than any liability which, in accordance with proper practices, must be charged to the general fund;
e
to make all or part of a payment to a person, where the obligation to make that payment arises on the disposal of an asset, as a result of an agreement made at the time of the acquisition of that asset, or in relation to such an agreement.