PART 2CREDIT ARRANGEMENTS

TRANSACTIONS WHICH ARE NOT CREDIT ARRANGEMENTS

Liabilities that do not arise from capital expenditure3

1

Subject to paragraph (2) 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 fixed asset.

Retirement benefits4

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).

2

For the purposes of paragraph (1) and regulation 25, “retirement benefits” means benefits payable pursuant to—

a

the Local Government Pension Scheme Regulations 19977;

b

the Firemen’s Pension Scheme Order 19928;

c

the Police Pensions Regulations 19879;

d

the Local Government (Early Termination of Employment) (Discretionary Compensation) (England and Wales) Regulations 200010;

e

the Teachers (Compensation for Redundancy and Premature Retirement) Regulations 199711; and

f

any other regulations made under section 24 of the Superannuation Act 1972 (Compensation for loss of office etc.)12.