The Education (Grants to Aided and Special Agreement Schools) Regulations 1998

Supplementary

6.—(1) Where at the time a grant is made it appears to the Secretary of State that there is associated school property in relation to the relevant school which has not at the time of making the grant been disposed of, grant shall be made either—

(a) in accordance with regulation 3, but taking B in the formula in that regulation as the market value of the property; or

(b) (if the Secretary of State so determines) in accordance with regulation 3, but taking B in the formula in that regulation as zero.

(2) Where paragraph (1) applies and grant was paid in accordance with paragraph (1)(a) the grant shall be made subject to a requirement that—

(a) if and when the associated school property is disposed of by way of sale (having not been previously disposed of by way of lease); and

(b) if the net proceeds of disposal are greater than the market value which was taken into account in determining the grant,

the governing body repay to the Secretary of State the difference between the grant paid and the grant which would have been paid if the grant had been paid after the property had been disposed of.

(3) Where paragraph (1) applies and grant was paid in accordance with paragraph (1)(b) the grant shall be subject to a requirement that if and when the associated school property is disposed of by way of sale the governing body repay to the Secretary of State the difference between the grant paid and the grant which would have been paid if the grant had been paid after the property had been disposed of.

(4) Where—

(a) grant was paid in accordance with the provisions of paragraph (1)(a),

(b) the associated property is disposed of by way of sale (having not been previously disposed of by way of lease), and

(c) the net proceeds of disposal are less than the market value which was taken into account in determining the grant,

the grant shall be re-determined after the completion of the sale in accordance with regulation 3 and further payment of grant accordingly made by the Secretary of State to the governing body.