{
  "url": "https://openlegislation.uk/local-authorities-capital-finance-and-accounting-england-regulations-2003/regulation-28",
  "json_url": "https://openlegislation.uk/local-authorities-capital-finance-and-accounting-england-regulations-2003/regulation-28.json",
  "legislation": "uksi/2003/3146",
  "legislation_title": "The Local Authorities (Capital Finance and Accounting) (England) Regulations 2003",
  "legislation_url": "https://openlegislation.uk/local-authorities-capital-finance-and-accounting-england-regulations-2003",
  "path": "regulation/28",
  "kind": "regulation",
  "number": "28",
  "heading": "Determination of minimum revenue provision",
  "text": "(1) A local authority shall determine for the current financial year an amount of minimum revenue provision which it considers to be prudent.\n(2) The amount determined under paragraph (1) must include an amount equal to any expected or actual credit loss which—\n(a) relates to a loan given by the local authority to any person or body on or after 7th May 2024, and\n(b) is recognised by the authority during the current financial year in accordance with proper practices.\n(3) A local authority may reduce the amount specified in paragraph (2) by deducting—\n(a) any amount of minimum revenue provision the local authority has already charged to a revenue account in respect of the financing of the loan, and\n(b) any amount of receipts, capital or otherwise, used to repay the principal of any amount borrowed to finance that loan.\n(4) Subject to paragraph (5), a local authority must not reduce its determination of what would otherwise be a prudent amount by the value of any capital receipts used, or to be used, by the authority in accordance with regulation 23(b) or (d) in the financial year to which the determination relates.\n(5) Where paragraph (6) applies, the authority may reduce its determination of what would otherwise be a prudent amount—\n(a) in respect of the financing of a loan, by deducting any amount of the capital receipts—\n(i) received in respect of that loan during the financial year, and\n(ii) used to repay the principal of any amount borrowed to finance that loan;\n(b) in respect of the financing of a capital asset to which a lease arrangement relates, by deducting any amount of the capital receipts—\n(i) received under that arrangement during the financial year, and\n(ii) used to meet any liability in respect of that arrangement, other than any liability which, in accordance with proper practices, must be charged to a revenue account.\n(6) This paragraph applies where—\n(a) a local authority has—\n(i) incurred expenditure through the giving of a loan which is treated as capital expenditure in accordance with regulation 25(1)(b),\n(ii) received loan repayments in respect of that loan which are treated as capital receipts in accordance with regulation 7, and\n(iii) determined that it will charge minimum revenue provision in respect of the financing of that loan, or\n(b) a local authority—\n(i) has received sums under an arrangement which is treated, in accordance with proper practices, as a finance lease, and\n(ii) those sums are treated for the purposes of Chapter 1 of Part 1 (capital finance etc) as capital receipts.\n(7) The capital receipts specified in paragraph (5)—\n(a) may not be used to reduce the amount specified in paragraph (2);\n(b) despite section 9(4) (“capital receipt”), must actually be received by the authority.",
  "extent": "E+W",
  "status": null,
  "version": "current",
  "annotations": [
    {
      "type": "F",
      "label": "F1",
      "text": "Reg. 28 substituted (31.3.2008) by The Local Authorities (Capital Finance and Accounting) (England) (Amendment) Regulations 2008 (S.I. 2008/414), regs. 1(1), 4(1)"
    },
    {
      "type": "F",
      "label": "F2",
      "text": "Reg. 28 renumbered as reg. 28(1) (7.5.2024) by The Local Authorities (Capital Finance and Accounting) (England) (Amendment) Regulations 2024 (S.I. 2024/478), regs. 1(3), 2(4)(a)"
    },
    {
      "type": "F",
      "label": "F3",
      "text": "Reg. 28(2)(3) inserted (7.5.2024) by The Local Authorities (Capital Finance and Accounting) (England) (Amendment) Regulations 2024 (S.I. 2024/478), regs. 1(3), 2(4)(b)"
    },
    {
      "type": "F",
      "label": "F4",
      "text": "Reg. 28(4)-(7) inserted (1.4.2025) by The Local Authorities (Capital Finance and Accounting) (England) (Amendment) Regulations 2024 (S.I. 2024/478), regs. 1(2), 2(4)(c)"
    }
  ],
  "outstanding_effects": [],
  "provenance": {
    "source": "legislation.gov.uk",
    "source_url": "https://www.legislation.gov.uk/uksi/2003/3146/regulation/28",
    "retrieved_at": "2026-10-29T05:38:10.449991+00:00"
  },
  "licence": "Open Government Licence v3.0",
  "licence_url": "https://www.nationalarchives.gov.uk/doc/open-government-licence/version/3/",
  "attribution": "Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives."
}