OpenLegislation

Regulation 27 Duty to make revenue provisionF1

England and Wales

(1)

During the financial year beginning on 1st April 2025 and every subsequent financial year, a local authority—

(a)

subject to paragraphs (3) and (4), must charge to a revenue account a minimum amount (“minimum revenue provision”) for that financial year in respect of all capital expenditure financed by debt and incurred by the local authority in that year or any financial year prior to that year, and

(b)

may charge to a revenue account any amount in addition to the minimum revenue provision, in respect of any capital expenditure financed by debt and incurred by the local authority in that year or any financial year prior to that year.

(2)

During the financial year beginning on 1st April 2024 and every subsequent financial year, a parish council or charter trustees may charge to a revenue account any amount in respect of capital expenditure financed by debt and incurred by the parish council or the charter trustees, as the case may be, in that year.

(3)

Where a local authority incurs capital expenditure financed by debt during a financial year, the authority may charge the minimum revenue provision in respect of that expenditure to a revenue account for—

(a)

the following financial year, or

(b)

in relation to an asset, if later, the financial year immediately after the financial year in which the asset first becomes available for use.

(4)

A local authority may choose not to charge minimum revenue provision to a revenue account in respect of the financing by debt of a loan given by that authority to any person or body, where—

(a)

the loan is treated as capital expenditure in accordance with regulation 25(1)(b),

(b)

the loan is not a commercial loan, and

(c)

the local authority has not recognised, in accordance with proper practices, any expected or actual credit loss in respect of that loan.

(5)

In this regulation—

  • “a commercial loan” is a loan given—

    1. (a)

      as an investment for financial return, or

    2. (b)

      towards expenditure which would, if incurred by the authority, be an investment for financial return;

  • “an investment for financial return” is an investment which is made primarily to generate financial return.

Annotations

Textual amendments

F1

Reg. 27 substituted (1.4.2025) by The Local Authorities (Capital Finance and Accounting) (England) (Amendment) Regulations 2024 (S.I. 2024/478), regs. 1(2), 2(3)