# The Local Authorities (Capital Finance) Regulations 1997, Regulation 99: Disposal and replacement of land or buildings

Extent: E+W
Status: prospective

(1) In this regulation—
“new land” means land in which a local authority acquire an interest, or on which they carry out works, in accordance with a decision such as is mentioned in paragraph (4)(b);
“new works” means works carried out in accordance with such a decision, and includes works executed by any person in consideration of the disposal made by the authority in accordance with that decision;
“qualifying purpose”, in relation to the use of land, means a purpose specified in any of the categories of Schedule 1 to these Regulations, and “category” means one of those categories; and
“works” includes construction works and other works which are for the enhancement of any land or a building on any land.
(2) For the purposes of this regulation—
(a) a disposal made pursuant to a compulsory purchase order shall be treated as if made by virtue of a decision of the authority made at the same time as the decision mentioned in paragraph (4)(b); and
(b) land held for housing purposes is land held for the purposes of Part II of the Housing Act 1985 (provision of housing accommodation), but not for any qualifying purpose.
(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 paragraph (6).
(4) For the purposes of paragraph (3), capital receipts derived from a disposal of an interest in land (“the land”) are specified where paragraph (5) applies to the disposal and—
(a) the authority decided to dispose of the land not more than five years before the date of the disposal or, if earlier, the date on which the capital receipts are received;
(b) at the time of that decision, the authority also decided to acquire a new interest in the land after the disposal, or an interest in any other land, or to carry out works on any land;
(c) if the new interest is a lease of part of the land, the initial cost of the lease is less than 50 per cent. of the amount which would be the initial cost of a lease on identical terms of the whole of the land; and
(d) the disposal meets the condition specified in regulation 84.
(5) This paragraph applies to a disposal of an interest in land if—
(a) at the time of the decision to make the disposal, the land was in use for a qualifying purpose and the authority decided to use the new land for the same qualifying purpose, or a different purpose within the same category as that which includes the same qualifying purpose;
(b) the disposal is made pursuant to a compulsory purchase order, and the land has been held for housing purposes for a period of at least two years ending on the date of the disposal (or, if earlier, the date on which the authority give up possession of the land pursuant to the order), and the authority have decided to use the new land for housing purposes; or
(c) there is situated on the land, at the time of the disposal, a defective dwelling within the meaning given to that expression in Part XVI of the Housing Act 1985 (assistance for owners of defective housing), and the authority have decided that the new land shall be held for housing purposes.
(6) For the purposes of paragraph (3), the amount of the reduction is, subject to paragraph (7), the aggregate of—
(a) the initial cost of any credit arrangement entered into by the authority for the purpose only of acquiring the new land or carrying out the new works;
(b) the value of any consideration falling to be given for such a purpose under any contract other than a credit arrangement; and
(c) any other costs incurred by the authority in connection with the acquisition of the new land or the carrying out of the new works.
(7) For the purposes of paragraph (6)(b), the value of the consideration falling to be given under a contract shall be the amount which, if the contract were a lease, would be the capital cost of the contract determined in accordance with regulation 14.

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Source: https://www.legislation.gov.uk/uksi/1997/319/regulation/99 (the official version)
Page: https://openlegislation.uk/local-authorities-capital-finance-regulations-1997/regulation-99
Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives.