PART 4CAPITAL RECEIPTS

POOLING OF RECEIPTS

Capital receipt treated as reduced14

1

Subject to regulation 12(5) and paragraph (2), for the purposes of calculating the specified amount, the capital receipt in relation to the disposal of the interest in housing land shall be treated as reduced by—

a

so much of the capital receipt as is applied by the local authority in meeting the administrative costs of and incidental to the disposal;

b

the costs of expenditure incurred by the local authority in improving the housing land within the period of three years ending on the date of the disposal; and

c

an amount, by which the authority determines that it shall be reduced, which may be an amount up to the value of its available capital allowance at the time the specified amount is calculated.

2

Paragraph (1)(c) shall not apply to capital receipts which a local authority derives from the disposal of a dwelling where the disposal is made—

a

under Part V of the Housing Act 1985 (right to buy)22; or

b

with a relevant consent, to a person who, when he acquires that dwelling, occupies or intends to occupy the dwelling as his only or principal home.

3

For the purposes of paragraph (2)(b), “relevant consent” means a consent to a disposal of land given by the Secretary of State to local authorities generally under section 32 or 43 of the Housing Act 1985 (disposal of land held for housing purposes)23.