12.—(1) For the purposes of Part 1 (financial administration) the following expenditure of a council, incurred on or after 1st April 2012, shall be treated as being capital expenditure insofar as it is not capital expenditure by virtue of section 19(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 council acquires or prepares the program for use for a period of at least one year for any purpose relevant to its functions;
(b)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 council, be capital expenditure;
(c)the repayment of any grant or other financial assistance given to the council for the purposes of expenditure which is capital expenditure;
(d)subject to paragraph (2), the acquisition of share capital or loan capital in any body corporate; and
(e)expenditure incurred on works to any land or building in which the council does not have an interest, which would be capital expenditure if the council had an interest in that land or building.
(2) Where the expenditure referred to in paragraph (1)(d) is—
(a)an investment for the purposes of the prudent management of a council’s financial affairs in accordance with section 23(b); and
(b)the investment is admitted to an official list maintained by a competent authority in an EEA state,
it shall not be treated as being capital expenditure by virtue of this regulation.
(3) In paragraph (2)—
“competent authority” means an authority which is responsible for maintaining the official list in an EEA state;
“EEA agreement” means the agreement on the European Economic Area signed at Oporto on 2nd May 1992, together with the Protocol adjusting that Agreement signed at Brussels on 17th March 1993, as modified or supplemented from time to time;
“EEA state”, in relation to any time, means—
a state which at that time is a member State; or
any other state which at that time is a party to the EEA agreement;
“official list” in relation to the United Kingdom has the meaning given by section 103(1) of the Financial Services and Markets Act 2000(1), and in relation to any other EEA State means the equivalent list maintained by the competent authority of that State.