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

MISCELLANEOUS

Use of capital receipts

18.—(1) This regulation applies to —

(a) a capital receipt other than a capital receipt to which regulation 10 applies; and

(b) the balance of a capital receipt to which regulation 10 applies after the amount specified in regulation 10(4) has been deducted.

(2) Subject to paragraphs (3) and (6) a capital receipt, or the balance of a capital receipt, to which this regulation applies may only be used for one or more of the following purposes—

(a) to meet capital expenditure;

(b) to repay the principal of any amount borrowed; or

(c) to meet any liability in respect of credit arrangements, other than any liability which, in accordance with proper practices, must be charged to a revenue account.

(3) Subject to paragraphs (4) and (6) a capital receipt received after 31st March 2004 in respect of a housing revenue account must only be used for the purposes in paragraph (2) in so far as those purposes relate to the housing revenue account functions of the authority in accordance with section 74 of the Local Government and Housing Act 1989.

(4) Any residual capital receipts from a qualifying disposal are excluded from the requirements of paragraph (3).

(5) For the purposes of paragraph (4) “residual capital receipts” means those receipts remaining after a local authority has extinguished the debts in respect of its housing revenue account functions.

(6) Where a local authority receive a capital receipt in respect of —

(a) a disposal of land held for the purposes of Part II of the Housing Act 1985, or

(b) any other disposal of land made by virtue of Part V (the right to buy) of that Act,

the capital receipt may be applied by the local authorities in defraying the administrative costs of and incidental to any such disposal.