The Local Authorities (Capital Finance and Accounts) (England) Regulations 2000

Explanatory Note

(This note is not part of the Regulations)

Regulation 2 of these Regulations further amends the Local Authorities (Capital Finance) Regulations 1997. Regulation 2(2) inserts regulation 12A which provides that a local authority need not charge to a revenue account under section 41(1) of the Local Government and Housing Act 1989 expenditure for capital purposes on property within the authority’s Housing Revenue Account, which does not fall within section 42(2)(a) to (i) of that Act. The authority would, in the absence of regulation 2(2), be required to charge the expenditure to the Housing Revenue Account (“HRA”) under Item 2(a) of Part II of Schedule 4 to that Act.

Regulation 3 of these Regulations amends the Accounts and Audit Regulations 1996 to require a local authority which is required to keep an HRA to show in the statement of accounts it is required to prepare under regulation 6 of the latter Regulations, a separate account, a major repairs reserve, showing in particular, expenditure not required to be charged to the HRA because of regulation 12A of the Local Authorities (Capital Finance) Regulations 1997, and which the authority do not choose to charge to the HRA, and a credit in respect of any charge for depreciation included in the HRA under item 8 of Part II of Schedule 4 to the 1989 Act.

Regulation 2(3) of these Regulations inserts a new regulation 59A into the Local Authorities (Capital Finance) Regulations 1997 to put beyond doubt that the sum received by an authority on the disposal of its rights and obligations as mortgagee of any land, houses or other real property is a capital receipt.