The Police Act 1997 (Provisions in relation to the NCIS Service Authority) Order 1998

Capital receipts

G19.—(1) For the purposes of this Part, the capital receipts of the Authority are, subject to the following provisions of this article those sums received by the Authority in respect of—

(a) the disposal of any interest in an asset if, at the time of disposal, expenditure on the acquisition of the asset would be expenditure for capital purposes;

(b) the disposal of any investment other than an investment which, at the time of disposal, is an approved investment;

(c) the repayment of, or a payment in respect of, any grants or other financial assistance of such a description that, if the expenditure on the grant or assistance had been incurred at the time of the repayment or payment, it would have constituted expenditure for capital purposes; or

(d) the repayment of the principal of an advance (not being an approved investment) made by the Authority for such a purpose that, if the advance had been made at the time of the repayment, expenditure incurred on it would have constituted expenditure for capital purposes;

and those sums become capital receipts at the time they are in fact received.

(2) When an asset or investment falling within sub-paragraph (a) or sub-paragraph (b) of paragraph (1) above is disposed of and the whole or part of the purchase price is not received by the Authority at the time of the disposal, then, subject to paragraph (4) below, any interest payable to the Authority in respect of the whole or any part of the price shall not be regarded as a capital receipt.

(3) Subject to paragraph (4) below, in the case of a disposal of an asset which consists of the grant, assignment or surrender of a leasehold interest in any land or the lease of any other asset, only the following are capital receipts,

(a) any premium paid on the grant or assignment;

(b) any consideration received in respect of the surrender;

(c) any sum paid by way of rent more than three months before the beginning of the rental period to which it relates;

(d) any sum paid by way of rent in respect of a rental period which exceeds one year; and

(e) so much of any other sum paid by way of rent as, in accordance with directions given by the Secretary of State, falls to be treated as a capital receipt.

(4) Where the Secretary of State has provided, by regulations made under section 58 of the 1989 Act, that the whole or such part as may be determined under the regulations of a sum received by a local authority and which apart from that section, would not be a capital receipt shall be such a receipt and the whole or such part as may be so determined of a sum which, apart from that section, would be a capital receipt shall not be such a receipt, then, for the purposes of the application of this Part, any such sum received by the Authority shall, or as the case may be, shall not be treated as a capital receipt; and references in those Regulations to local government enactments shall be interpreted as references to the equivalent provisions of, or as applied by, this Order.