Regulation 4 Reduction of receipts by reference to costs of buying back dwelling-houses

Insert the following regulation after regulation 104–

“Reduction of receipts by reference to costs of buying back dwelling-houses

104A

(1)

In this regulation–

• “the current year”, in relation to any capital receipts, means the financial year in which the capital receipts are received;

• “dwelling-house” has the same meaning as it has in Part V of the Housing Act 1985^f1 (the right to buy);

• “new town corporation”, “housing action trust” and “urban development corporation” have the same meaning as in section 80 of the Housing Act 1985^f2; and

• “the last year”, in relation to any capital receipts, means the financial year immediately preceding the current year.

(2)

In this regulation, an interest in land is a relevant interest if–

(a)

it is the freehold interest or a leasehold interest in a dwelling-house and is not acquired pursuant to a compulsory purchase order;

(b)

the freehold interest or a leasehold interest in the dwelling-house has previously been disposed of by the authority, by another local authority, by a new town corporation, by a housing action trust, or by an urban development corporation; and

(c)

the person from whom it is acquired is not a body of persons corporate or unincorporate.

(3)

Capital receipts of a description specified in paragraph (4) shall be treated for the purposes only of section 59 as reduced by an amount determined in accordance with paragraphs (5) and (6).

(4)

For the purposes of paragraph (3), capital receipts derived from a disposal of an interest in a dwelling-house are specified where–

(a)

the authority are a local authority in England;

(b)

subject to a reduction under this regulation, a part of the capital receipts falls to be set aside by the authority as provision to meet credit liabilities;

(c)

the reserved part is, or, but for any other provision of these Regulations, would be, 75 per cent. by virtue of section 59(2)(a); and

(d)

the disposal meets the condition specified in regulation 84, or the authority make the disposal by granting a shared ownership lease (as defined in regulation 22(1)).

(5)

Subject to paragraph (6), the amount of the reduction for the purposes of paragraph (3) is

$$\mathrm{A}-\mathrm{B}\text{,}$$

where–

• A is 47 per cent. of the amount, if any, by which the total expenditure incurred by the authority in the last year on acquiring relevant interests in land (including the administrative costs of and incidental to any such acquisitions) exceeded the sum of £50,000; and

• B is the total amount, if any, by which capital receipts of the authority have already been reduced in the current year under this regulation.

(6)

The amount of the reduction shall not exceed the amount of the capital receipts.”.