Regulation 8 Lease classification

After regulation 24H insert—

“Lease classification

24I

Where, on or after 1 April 2009, a local authority receives money under an arrangement—

(a)

which is in existence on, and is not treated according to proper practices as a finance lease at, 31 March 2010, and

(b)

all or part of that arrangement will be treated according to proper practices as a finance lease on or after 1 April 2010,

the money received under that arrangement may be accounted for in accordance with proper practices applying to that arrangement on 31 March 2010.

24J

Where, on or after 1 April 2009, a local authority receives money under an arrangement—

(a)

which is in existence on, and is not treated according to proper practices as an operating lease at, 31 March 2010, and

(b)

all or part of that arrangement will be treated according to proper practices as an operating lease on or after 1 April 2010,

the money received under that arrangement may be accounted for in accordance with proper practices applying to that arrangement on 31 March 2010.”.