Citation, commencement and extent

1. —(1) These Regulations, which extend to England only( 3 ), may be cited as the Local Authorities (Capital Finance and Accounts) (England) Regulations 2000.

(2) These Regulations shall come into force on 1st April 2001.

Amendment of the Local Authorities (Capital Finance) Regulations 1997

2. —(1)The Local Authorities (Capital Finance) Regulations 1997( 4 ) shall be amended as follows:

(2) Insert the following regulation after regulation 12—

“ Expenditure not required to be charged to a revenue account—expenditure for capital purposes on property within the Housing Revenue Account

12A. Expenditure which—

(a) is expenditure for capital purposes in respect of any land, houses or other property to which section 74(1) of the Act (duty to keep Housing Revenue Account) for the time being applies;

(b) does not fall within either section 42(2)(a) to (i) of the Act or regulation 12; and

(c) but for this regulation, would be required to be carried to the debit of the Housing Revenue Account of the authority under item 2(a) of Part II of Schedule 4 to the Act,

shall be expenditure falling within section 42(2). ” .

(3) Insert the following regulation after regulation 59—

“ Disposal of mortgage portfolio

59A. A sum received by a local authority in respect of the disposal of the authority’s rights and obligations as mortgagee of any land, house or other real property, if it is not a capital receipt by virtue of section 58(1) (capital receipts), shall be a capital receipt. ” .

Amendment of the Accounts and Audit Regulations 1996

3. Insert the following paragraph after paragraph (4) of regulation 6 of the Accounts and Audit Regulations 1996( 5 );

“ (4A) In the case of a local authority which is required by section 74 of the Local Government and Housing Act 1989 (“the 1989 Act ”) to keep a Housing Revenue Account, the statement of accounts required by paragraph (1) shall include also an account in respect of a reserve for major repairs to property of the authority to which section 74(1) of the 1989 Act for the time being applies (to be called a major repairs reserve), showing in particular both:

(a) a debit in respect of expenditure which is—

(i) excluded from the obligation in section 41(1) of the 1989 Act because of regulation 12A of the Local Authorities (Capital Finance) Regulations 1997, and

(ii) not carried to the debit of the Housing Revenue Account of the authority under item 2(b) of Part II of Schedule 4 to the 1989 Act; and

(b) a credit of an amount in respect of any charge for depreciation included in the Housing Revenue Account under item 8 of Part II of Schedule 4 to the 1989 Act. ” .