The Local Government Reorganisation (Wales) (Capital Finance and Miscellaneous Provisions) Order 1996

Housing Revenue Account: opening balances

12.—(1) For the year beginning on 1st April 1996 paragraphs (2) to (5) of this article shall have effect in relation to a new authority in place of the provisions of section 75 of, and Schedule 4 to, the 1989 Act, insofar only as that section and that Schedule relate to Item 10 in Part I (credit balance from previous year), and Item 9 in Part II (debit balance from previous year), of that Schedule.

(2) For the year beginning on 1st April 1996 a new authority shall carry to the credit of its Housing Revenue Account—

(a) all credit balances (if any) shown at the end of 31st March 1996 in the Housing Revenue accounts of its undivided old authorities; and

(b) all its HRA shares (if any), calculated under paragraph (4) below, which are a positive amount.

(3) For the year beginning on 1st April 1996 a new authority shall carry to the debit of its Housing Revenue Account—

(a) all debit balances (if any) shown at the end of 31 March 1996 in the Housing Revenue Accounts of its undivided old authorities; and

(b) all of its HRA shares (if any), calculated under paragraph (4) below, which are a negative amount.

(4) The HRA share for a new authority shall be calculated in relation to each of its divided old authorities (if any) by applying the formula—

where

• U and Tu have the meanings given by paragraph (3) of article 8 of this Order, and B has the meaning given by paragraph (5) below.

(5) In paragraph (4) above—

(a) where the balance shown in the divided old authority’s Housing Revenue Account at the end of 31 March 1996 is a credit balance, B is the amount of that balance expressed as a positive amount;

(b) where the balance shown in the divided old authority’s Housing Revenue Account at the end of 31 March 1996 is a debit balance, B is the amount of that balance expressed as a negative amount;

(c) where the balance shown in the divided old authority’s Housing Revenue Account at the end of 31 March 1996 is nil, B is nil.