Citation, commencement and application

1. —(1) These Regulations may be cited as the Local Authorities (Capital Finance and Accounting) (Amendment) (England) Regulations 2010, and come into force—

(a) for the purposes of the amendments made by regulation 3(2) and (3) on 31st March 2010; and

(b) for all other purposes on 1st April 2010.

(2) These Regulations apply in relation to local authorities in England.

Amendment of regulations

2.The Local Authorities (Capital Finance and Accounting) (England) Regulations 2003( 2 ) are amended as specified in regulations 3 to 9 .

Retirement benefits

3. —(1) In regulation 4(2)( 3 ), for the words after “payable pursuant to” to the end of the paragraph, substitute “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).”.

(2) In relation to accounts prepared for the financial year beginning on 1st April 2009, paragraph (1) has effect as if for the words “defined benefit pension plan or as other long-term employee benefits” is substituted “defined benefit scheme”.

(3) In regulation 30, for the words “legislation specified” to “sub-paragraph (b), of” substitute “statutory requirements mentioned in”.

Use of capital receipts

4. In regulation 23( 4 )—

(a) in paragraph (e), omit the word “administrative”;

(b) at the end of paragraph (f), omit “or”; and

(c) after paragraph (g), insert—

“ (h) to meet the costs of or incidental to a disposal of an interest in land other than housing land, provided these do not exceed 4% of the capital receipt arising from the disposal; or

(i) to make all or part of a payment to a person, where the obligation to make that payment arises on the disposal of an asset, as a result of an agreement made at the time of the acquisition of that asset, or in relation to such an agreement. ” .

Expenditure to be capital expenditure

5. In regulation 25(3)( 5 )—

(a) at the end of sub-paragraph (c), for “,” substitute “; or”; and

(b) after subparagraph (c) insert—

“ (d) the acquisition of shares in an investment scheme approved by the Treasury under section 11(1) of the Trustee Investments Act 1961 (local authority investment schemes), ” .( 6 )

Back payment following unequal pay

6. In regulation 30A( 7 ), after paragraph (4) insert—

“ (5) Subject to paragraph (6), this regulation ceases to have effect on 1st April 2013.

(6) Where paragraph (4) applies to an amount, it continues to apply until the date on which the payment is actually made, whether or not the date is on or after 1st April 2013. ” .

Short-term accumulating compensated absences

7. After regulation 30G( 8 ), insert—

“ Short-term accumulating compensated absences

30H. Where, in accordance with proper practices, a local authority includes an amount in respect of a liability for short-term accumulating compensated absences in its balance sheet, the authority must not charge to a revenue account an amount in respect of that liability until the date on which the liability ceases or is discharged. ” .

Lease classification

8. After regulation 30H, insert—

“ Lease classification

30I. —(1) Where, on or after 1st April 2009, a local authority receives money under an arrangement—

(a) which is in existence on, and is not treated according to proper practices as a finance lease at, 31st March 2010, and

(b) all or part of that arrangement will be treated according to proper practices as a finance lease on or after 1st April 2010,

the money received under that arrangement may be accounted for in accordance with proper practices applying to that arrangement on 31st March 2010.

(2) Where, on or after 1st April 2009, a local authority receives money under an arrangement—

(a) which is in existence on, and is not treated according to proper practices as an operating lease at, 31st March 2010, and

(b) all or part of that arrangement will be treated according to proper practices as an operating lease on or after 1st April 2010,

the money received under that arrangement may be accounted for in accordance with proper practices applying to that arrangement on 31st March 2010. ” .

Proper practices

9. In regulation 31(a), omit the words “A Statement of Recommended Practice: ”( 9 ).

Revocation

10.Regulation 5(1) of the Local Authorities (Capital Finance and Accounting) (Amendment) (England) Regulations 2007( 10 ) is revoked.