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

PART 2 E+W CREDIT ARRANGEMENTS

[F1 TRANSACTIONS WHICH ARE CREDIT ARRANGEMENTS E+W

Textual Amendments

F1 Reg. 2A and sub-part heading inserted (31.3.2018) by The Local Authorities (Capital Finance and Accounting) (Wales) (Amendment) Regulations 2018 (S.I. 2018/325), regs. 1(1), 4(1)

Securitisation transactions E+W

2A.   A securitisation transaction must be treated as a transaction falling within section 7(2)(a).]

TRANSACTIONS WHICH ARE NOT CREDIT ARRANGEMENTS E+W

Liabilities that do not arise from capital expenditure E+W

3.—(1) Subject to [F2 paragraphs (2) and (3)] liabilities of a local authority that do not arise from the incurring by the authority of capital expenditure are liabilities specified for the purposes of section 7(3)(c) (Exclusion of certain liabilities from definition of “qualifying liabilities”).

(2) Paragraph (1) does not apply where proper practices in accordance with regulation 25 require the recognition of a [F3 non-current asset which is not a financial asset].

[F4 (3) Paragraph (1) applies to liabilities that are credit arrangements entered into after 31st March 2004.

(4) Paragraph (1) does not apply where liabilities are credit arrangements in accordance with section 48 of the Local Government and Housing Act 1989 entered into before 1st April 2004 which are not funded by capital receipts or credit arrangements under section 50(3) of that Act until such arrangements cease or are varied in any way.]

Textual Amendments

F2 Words in reg. 3(1) substituted (1.4.2004) by The Local Authorities (Capital Finance and Accounting) (Wales) (Amendment) Regulations 2004 (S.I. 2004/1010), regs. 1(1), 2(4)(a)

F3 Words in reg. 3(2) substituted (31.3.2018) by The Local Authorities (Capital Finance and Accounting) (Wales) (Amendment) Regulations 2018 (S.I. 2018/325), regs. 1(1), 5

F4 Reg. 3(3)(4) inserted (1.4.2004) by The Local Authorities (Capital Finance and Accounting) (Wales) (Amendment) Regulations 2004 (S.I. 2004/1010), regs. 1(1), 2(4)(b)

Commencement Information

I1 Reg. 3 in force at 1.4.2004, see reg. 1(1)

Retirement benefits E+W

4.—(1) Liabilities for retirement benefits as represented by an appropriation to a pension reserve in accordance with proper practices in accordance with regulation 25 are liabilities specified for the purposes of section 7(3)(c).

[F5 (2) For the purposes of paragraph (1) and regulation 24 “retirement benefits” means benefits payable pursuant to statutory requirements under an arrangement accounted for as a defined benefit pension plan or as other long-term employee benefits (as defined in accordance with proper practices).]

Textual Amendments

F5 Reg. 4(2) substituted (1.4.2010) by The Local Authorities (Capital Finance and Accounting) (Wales) (Amendment) Regulations 2010 (S.I. 2010/685), regs. 1(2), 3(1) (with reg. 3(2))

Commencement Information

I2 Reg. 4 in force at 1.4.2004, see reg. 1(1)

CALCULATION OF COST OF CREDIT ARRANGEMENTS AND OTHER CONTROLS E+W

[F6 Calculation of cost of credit arrangements E+W

5.   For the purposes of section 8(2) (entry into a credit arrangement or variation to be treated as the borrowing of an amount equal to the cost of the arrangement or variation), the cost of a credit arrangement or variation of a credit arrangement is—

(a) in the case of a securitisation transaction, an amount equal to the value of the consideration received by the authority as a result of that transaction; or

(b) in all other cases, the amount of the liability in respect of that arrangement or variation which is shown, in accordance with proper practices, in the authority’s accounts.]

Textual Amendments

F6 Reg. 5 substituted (31.3.2018) by The Local Authorities (Capital Finance and Accounting) (Wales) (Amendment) Regulations 2018 (S.I. 2018/325), regs. 1(1), 4(2)

[F7 Varied Transactions E+W

5A.   For the purposes of Chapter 1 of Part 1 (Capital finance etc), a local authority shall be taken to have entered into a credit arrangement where —

(a) on or after 1st April 2004, it enters into a transaction (“the new transaction”) which varies a transaction entered into previously, whether before, on or after 1st April 2004 (“the earlier transaction”);

(b) the earlier transaction did not result in the local authority being taken to have entered into a credit arrangement; and

(c) the local authority would, if it had entered into the earlier transaction as varied by the new transaction on —

(i) the date on which the earlier transaction was entered into; or

(ii) if later, 1st April 2004,

be taken to have entered into a credit arrangement, and the date on which it is taken to have entered into the credit arrangement by virtue of this regulation is the date on which it enters into the new transaction]

Textual Amendments

F7 Reg. 5A inserted (1.4.2004) by The Local Authorities (Capital Finance and Accounting) (Wales) (Amendment) Regulations 2004 (S.I. 2004/1010), regs. 1(1), 2(5)