The Local Authorities (Capital Finance and Accounting) (England) Regulations 2003

Total capital allowance

16.—(1) For the purposes of regulation 15, a local authority’s total capital allowance is the total value of—

(a) the amount of any reduction determined by the authority before 1st April 2004 under regulation 104B(4) of the Local Authorities (Capital Finance) Regulations 1997 (disposal of land to assist in the provision of affordable housing)(1) where—

(i) no capital receipts were treated as reduced by that amount, for the purposes of section 59 of the Local Government and Housing Act 1989 (the reserved part of capital receipts)(2), before 1st April 2004; and

(ii) capital receipts could be treated as reduced by that amount under regulation 104B, for the purposes of that section, but for the repeal of that section on 1st April 2004(3).

(b) to the extent not included in sub-paragraph (a), the costs of expenditure incurred by the authority, for the purpose of facilitating the disposal of an interest in land, on—

(i) obtaining planning permission for the development of the land, or taking any other steps required to facilitate such development;

(ii) preparing the land for development;

(iii) acquiring an interest, easement, servitude or right in or over the land or adjoining land; or

(iv) obtaining the release of a restrictive covenant affecting the land,

where capital receipts derived from the disposal are capital receipts to which regulation 12 applies;

(c) to the extent not included in sub-paragraph (a) or (b), the amount of the contributions which the authority has made, or has decided to make but has not yet made, on or after 1st April 2004, towards the costs of the projects specified in regulations 17 and 18 by —

(i) constructing or improving dwellings, or providing dwellings by the conversion of a building or a part of a building;

(ii) making a gift of land;

(iii) paying a contribution, grant or subsidy under any power conferred on the authority under any enactment; or

(iv) giving consideration for any benefit that the authority has received, or will receive, by virtue of the project.

(2) For the purposes of paragraph (1)(c)(ii), the authority makes a gift of land where it transfers an interest in land and either —

(a) no consideration falls to be given for the transfer; or

(b) the value of the consideration that falls to be given for the transfer is less than the price that the interest transferred would realise at the date of the valuation if sold by the authority on the open market.

(1)

S.I. 1997/319; regulation 104B was inserted by S.I. 2003/43.

(2)

1989 c. 42.

(3)

See S.I. 2003/2938 (C. 107).