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

Capital purposes

G2.—(1) References in this Part to expenditure for capital purposes shall be construed in accordance with this article.

(2) Subject to paragraphs (5) and (6) below, the following expenditure (relating to tangible assets) is expenditure for capital purposes, namely, expenditure on—

(a) the acquisition, reclamation, enhancement or laying out of land, exclusive of roads, buildings and other structures;

(b) the acquisition, construction, preparation, enhancement or replacement of roads, buildings and other structures; and

(c) the acquisition, installation or replacement of moveable or immoveable plant, machinery and apparatus and vehicles and vessels.

(3) For the purposes of paragraph (2) above, “enhancement”, in relation to any asset, means the carrying out of works which are intended—

(a) to lengthen substantially the useful life of the asset; or

(b) to increase substantially the open market value of the asset; or

(c) to increase substantially the extent to which the asset can or will be used for the purposes of or in connection with the functions of the Authority;

but expenditure on the enhancement of an asset shall not be regarded as expenditure for capital purposes unless it should be so regarded in accordance with proper practices.

(4) Subject to paragraph (5) below, the following expenditure, in so far as it is not expenditure on approved investments, is expenditure for capital purposes, namely, expenditure on—

(a) the making of advances, grants or other financial assistance to any person towards expenditure incurred or to to be incurred by him on the matters mentioned in paragraphs (a) to (c) of paragraph (2) above or on the aquisition of investments; and

(b) the aquisition of share capital or loan capital in any body corporate.

(5) Where the Secretary of State has provided, by regulations made under section 40 of the 1989 Act, that expenditure by a local authority which, apart from the provision made by the regulations would not be expenditure for capital purposes shall be such expenditure; or that expenditure which, apart from the provision made by the regulations, would be expenditure for capital purposes shall not be such expenditure, then, for the purposes of the application of this Part, any such expenditure by the Authority shall, or as the case may be, shall not be treated as expenditure for capital purposes.

(6) Notwithstanding anything in the preceding provisions of this article, if the Secretary of State so directs, expenditure which—

(a) is of a description or for a purpose specified in the direction, and

(b) has been or is to be incurred by the Authority, and

(c) does not exceed such amount as is specified in the direction, and

(d) was or will be incurred during a period specified in the direction,

may be treated by the Authority as expenditure for capital purposes.