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

The reserved part of capital receipts

G20.—(1) At the time when the Authority receives a capital receipt, a part of that receipt (in this Part referred to as “the reserved part”) shall be set aside by the Authority as provision to meet credit liabilities.

(2) Subject to the following provisions of this article, the reserved part of a capital receipt shall be 50 per cent.

(3) Where the Secretary of State by regulations under section 59 of the 1989 Act alters the percentage which is for the time being the reserved part of any capital receipt of an authority or provides that the amount which is the reserved part of any capital receipt of an authority shall be determined in accordance with the regulations for the purposes of that section then for the purposes of the application of this article the reserved part of a capital receipt shall be as provided by those regulations or determined in accordance with those regulations; 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.

(4) Where the Secretary of State by regulation provides that capital receipts of a description specified in the regulations shall be treated for the purposes of section 59 of the 1989 Act as reduced by an amount determined in accordance with the regulations then for the purposes of this article capital receipts of the specified description of the Authority shall be treated as reduced by such amount as they would be if they were captial receipts of an authority determined in accordance with the regulations; 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.

(5) Without prejudice to subsection (3) above, in any case where—

(a) the consent of the Secretary of State is required for a disposal of a dwelling-house or any other property, and

(b) the Secretary of State gives a direction under this sub-paragraph with respect to a capital receipt in respect of that disposal,

subsection (2) above shall have effect in relation to that capital receipt as if it provided that the reserved part of the receipt were a percentage thereof specified in the direction or, according as the direction provides, an amount determined in accordance with the direction.

(6) Paragraph (1) above does not apply to a capital receipt received by the Authority as trustee of a trust fund which is held for charitable purposes.

(7) Where the Authority receives a capital receipt in respect of an asset, investment, grant or other financial assistance which was originally acquired or made by the Authority wholly or partly out of moneys provided by Parliament on terms which require, or enable a Minister of the Crown to require, the payment of any sum to such a Minister on or by reference to the disposal of the asset or investment or the repayment of the grant or assistance, the amount of the capital receipt shall be treated for the purposes of the preceding provisions of this article as reduced by the sum which appears to the Authority to be so payable.