The Local Authorities (Capital Finance and Accounting) (England) (Amendment) Regulations 2013

Made: 5th March 2013

Laid before Parliament: 8th March 2013

Coming into force in accordance with regulation 1(2) and (3)

The Secretary of State makes the following Regulations in exercise of the powers conferred by sections 11, 21(1) and 123 of the Local Government Act 2003[^f00001]:

Citation, commencement and interpretation

1

• (1) These Regulations may be cited as the Local Authorities (Capital Finance and Accounting) (England) (Amendment) Regulations 2013.

• (2) Subject to paragraph (3), these Regulations shall come into force on 31st March 2013.

• (3) Regulations 3, 4, 6, 7 and the Schedule shall come into force on 1st April 2013.

• (4) In these Regulations “the 2003 Regulations” means the Local Authorities (Capital Finance and Accounting) (England) Regulations 2003[^f00002].

Amendment of the Local Authorities (Capital Finance and Accounting) (England) Regulations 2003

2

The 2003 Regulations are amended as follows.

Pooling of receipts from the disposal of housing land

3

• (1) In regulation 14—

• (a) for paragraph (1) substitute—

(1) This regulation applies to the following capital receipts arising from the disposal of housing land prior to 1st April 2012— (a) amounts received by the local authority as mortgagee of any housing land; (b) amounts received on or after 1st April 2006, in relation to the disposal of the authority’s rights and obligations as mortgagee of any dwelling; and (c) amounts received pursuant to the enforcement of a covenant contained in a conveyance of a freehold or grant of a leasehold in compliance with section 155 of the Housing Act 1985[^f00003] (repayment of the right to buy discount).

• (b) for paragraph (2), substitute—

(2) Where this regulation applies, the specified amount is an amount equal to 75% of the capital receipt in relation to the disposal of housing land.

; and

• (c) omit paragraph (3).

• (2) Omit regulations 15 to 19.

Schedule – Calculation of the sub-liability

4

• (1) Subject to paragraph (2), for the Schedule to the 2003 Regulations substitute the Schedule set out in the Schedule to these Regulations.

• (2) The Table referred to in paragraph 2 of the Schedule to the 2003 Regulations is not substituted.

Use of capital receipts

5

• (1) In regulation 23[^f00004]—

• (a) at the end of paragraph (h), omit “or”; and

• (b) at the end of paragraph (i), for “.” insert—

; or (j) where receipts are received on or after 1st April 2012, to make a back payment (within the meaning of regulation 30A(2)) in respect of unequal pay where the liability arises in the circumstances specified in regulation 30A(3).

Back payment following unequal pay

6

In regulation 30A[^f00005], in paragraphs (5) and (6), for “1st April 2013” substitute “1st April 2018”.

Saving provision

7

Notwithstanding the revocation of regulations 14 to 19 of, and the Schedule to, the 2003 Regulations by these Regulations, regulations 14 to 19 and the Schedule continue to have effect for the purpose of calculating the poolable amount for the quarter 1st January 2013 to 31st March 2013.

SCHEDULE

Signed

Signed by authority of the Secretary of State for Communities and Local Government

Brandon Lewis — Parliamentary under Secretary of State — Department for Communities and Local Government — 5th March 2013

Explanatory note

(This note is not part of the Regulations)

EXPLANATORY NOTE

The Regulations amend the Local Authorities (Capital Finance and Accounting) (England) Regulations 2003 (“the 2003 Regulations”).

Regulation 4 inserts a schedule which provides for the calculation of the sub-liability, which forms part of the poolable amount.

Regulation 5 permits local authorities to use capital receipts received on or after 1st April 2012 to make back payments of equal pay costs.

Regulation 6 extends until and including 31st March 2018 the ability of local authorities to defer charging liabilities for back payments following unequal pay to a revenue account until the date on which a back payment must actually be paid. Where this provision applies to a back payment, it will continue to apply until the date on which the payment is actually made, whether or not the date is on or after 1st April 2018, by virtue of existing regulation 30A(6).

Paragraph 1 of the Schedule describes the dwellings to which the Schedule applies. Paragraph 2 defines the terms used in the Schedule. Paragraphs 3 to 13 set out the calculation of the sub-liability.

A full impact assessment has not been produced for this instrument as no impact on the private or voluntary sectors is foreseen.

Footnotes

[^f00001]: 2003 c. 26.

[^f00002]: S.I. 2003/3146 as amended by S.I. 2006/521, S.I. 2007/573, S.I. 2009/2272, S.I. 2010/454, S.I. 2012/265, S.I. 2012/711, S.I. 2012/1324 and S.I. 2012/2269. There are other amending instruments but none is relevant to these Regulations.

[^f00003]: 1985 c. 68.

[^f00004]: Regulation 23 has been amended by S.I. 2006/521, S.I. 2010/454, S.I. 2012/711 and S.I. 2012/2269.

[^f00005]: Regulation 30A was inserted by S.I. 2007/573. It has been amended by S.I. 2010/454.

[^f00006]: The document can be found on the GOV.UK website at the following address: www.gov.uk.

[^f00007]: This document is available for inspection at the following address: The Department for Communities and Local Government, Eland House, Bressenden Place, London SW1E 5DU.