Citation, commencement and application

1.-(1) These Regulations may be cited as the Local Authorities (Capital Finance and Accounting) (England) (Amendment) Regulations 2017 and come into force on 1st May 2017.

(2) The amendments made by regulation 2(2) apply in relation to a financial year commencing on or after 1st April 2016.

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

2.-(1) The Local Authorities (Capital Finance and Accounting) (England) Regulations 2003(2) are amended as follows.

(2) In regulation 23 (use of capital receipts)-

(a)at the end of paragraph (i) omit "or";

(b)after paragraph (j) insert-

"or

(k)in the case of a Mayoral development corporation established under Chapter 2 of Part 8 of the Localism Act 2011(3), to meet any liability to pay corporation tax.".

(3) In the Schedule (calculation of the sub-liability), in paragraph 9 at the end insert-

"(f)2.441789231 in the financial year 2017 to 2018, except in relation to Cambridge City Council where it means 2.438300307;

(g)2.417613100 in the financial year 2018 to 2019;

(h)2.393676336 in the financial year 2019 to 2020; and

(i)2.369976571 in the financial year 2020 to 2021.".

(4) In the Schedule, for Table A (assumed debt for each quarter in a year) and Table B (local authority share cap for each quarter in a year) substitute the tables set out in the Schedule to these Regulations.

Regulation 2(4)

SCHEDULETables to be substituted in the Schedule to the 2003 Regulations

EXPLANATORY NOTE

(This note is not part of the Regulations)

The Local Authorities (Capital Finance and Accounting) (England) Regulations 2003 (S.I. 2003/3146) ("the 2003 Regulations") make provision for capital finance and accounts under Part 1 of the Local Government Act 2003 (c. 26). These Regulations make amendments to the 2003 Regulations and come into force on 1st April 2017.

Regulation 23 of the 2003 Regulations specifies the purpose to which capital receipts may be put. Regulation 2(2) of these Regulations amend regulation 23 of the 2003 Regulations to provide that in the case of a Mayoral development corporation a capital receipt may be used to meet any liability to pay corporation tax.

The 2003 Regulations also require a local housing authority to pay an amount ("the poolable amount") to the Secretary of State each quarter in respect of capital receipts from housing land. Regulation 2(3) and (4) of, and the Schedule to, these Regulations amend the Schedule to the 2003 Regulations concerning the calculation of the sub-liability (as defined in regulation 1(5) of the 2003 Regulations) which forms part of the local authority's poolable amount (see regulations 1(5) and 12 of the 2003 Regulations).

An impact assessment has not been published for this instrument as it has no impact on the private sector or voluntary sector.