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

Transitional reductions for debt-free authorities

21.—(1) Where a local authority was a debt-free authority on 31st March 2004, for the purposes of calculating the specified amount, the capital receipt may be treated as reduced in accordance with paragraph (2).

(2) Subject to regulation 12(5) and paragraph (3), after the local authority has made any reductions to the amount of the capital receipt under regulations 14 to 20, the resulting amount of the capital receipt may be treated as further reduced—

(a) in relation to any capital receipt received in the financial year beginning on 1st April 2004, by up to 75%;

(b) in relation to any capital receipt received in the financial year beginning on 1st April 2005, by up to 50%; and

(c) in relation to any capital receipt received in the financial year beginning on 1st April 2006, by up to 25%.

(3) The total amount of—

(a) any reduction to a capital receipt calculated under paragraph (2), in relation to a financial year in which the capital receipt was received; and

(b) any reductions previously made under paragraph (2) in relation to that financial year,

shall not exceed the total amount of housing expenditure which the local authority, at the time when the reduction referred to in sub-paragraph (a) is calculated, has incurred in that financial year or has decided in that financial year to incur but has not yet incurred.

(4) In this regulation—

“housing expenditure” means expenditure incurred or to be incurred by the local authority when discharging functions in its capacity as local housing authority; and

“local housing authority” has the same meaning as in section 1 of the Housing Act 1985 (local housing authorities)(1).

(1)

1985 c. 68; there are amendments to section 1 which are not relevant to these Regulations.