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Article 4 Credit: Bodies Concerned with the Environment-Transitional Provisions

Original text. Later amendments are not shown.

(1)

This article applies where—

(a)

a payment is a qualifying contribution at the time it is made, and

(b)

as a result of the amendments made by article 3 of this Order (“the relevant amendments”) the payment would not be a qualifying contribution if it were to be accounted for in a return for an accounting period beginning on or after the day on which the transitional period commences.

(2)

Where this article applies the relevant amendments shall be disregarded provided that the payment is spent during the transitional period, but this is subject to paragraphs (3) and (4) below.

(3)

Any payment to which this article applies that has not been spent during the transitional period (“residual funding”) and is not being held after the end of that period for an object which is an approved object shall continue to be treated as a qualifying contribution to the extent that—

(a)

the residual funding is to be used to pay that approved body’s running costs,

(b)

the proportion of residual funding to be used for that purpose does not exceed the proportion of that body’s total running costs that is, on a just and equitable basis, attributable to its carrying out of approved objects, and

(c)

the total amount of qualifying contributions, including any residual funding, to be used for that purpose, does not exceed the amount given by regulation 33(8) LFTR 1996.

(4)

For the purpose of paragraph (3)—

(a)

“approved object” means any object that is an approved object on the day that the transitional period ends in respect of any payment to which this article does not apply, and

(b)

the proportion of the body’s total running costs that is attributable to its carrying out of approved objects is to be determined on the day that the transitional period ends.

(5)

A qualifying contribution is spent for the purposes of this article if—

(a)

during the transitional period, one of the requirements specified in regulation 30(2) LFTR1996 has been satisfied, and

(b)

in a case where regulation 30(2)(a) LFTR1996 applies, the condition to which that sub-paragraph refers was imposed at a time prior to the making of this Order.