Regulation 42 Transactions for the provision of a building and heating servicesI1

England and Wales Not yet in force

(1)

In this regulation—

“qualifying purpose”, in relation to the use of land, means a purpose specified in any of the categories 1 to 6 and 8 and 9 of Schedule 1 to these Regulations, and “category” means one of those categories; and
“relevant transaction” means a private finance transaction to which paragraph (3) applies.

(2)

A credit arrangement which is a relevant transaction shall be excluded from section 49(2), and the initial cost and the cost at any time of the transaction shall be calculated in accordance with paragraphs (4) to (6).

(3)

This paragraph applies to a private finance transaction where—

(a)

the initial cost of the transaction does not fall to be determined under regulation 40 or 41;

(b)

the asset provided under the transaction consists of, or includes, a building which is on non-housing land and is for use for a qualifying purpose; and

(c)

the services provided in relation to the asset consist of, or include, maintaining and repairing the system for heating the building and providing for the supply of the gas, electricity and fuel required for such heating.

(4)

Subject to paragraph (6), the initial cost of a relevant transaction shall be 70 per cent. of the amount which, apart from this regulation, would be the initial cost of the arrangement.

(5)

Subject to paragraph (6), the cost at any time of a relevant transaction shall be 70 per cent. of the amount which, apart from this regulation, would be the cost of the transaction at that time.

(6)

For the purpose of calculating the initial cost or cost at any time of a relevant transaction, the authority shall disregard any consideration not in money which has been, or falls to be, given by them in respect of the transaction.

Annotations

Commencement

I1: Reg. 42 in force at 1.4.1997, see reg. 1(1)(b)