Scottish Crown Estate Bill 13 Part 3—Management of Scottish Crown Estate assets Financial matters 26 Separation of income and capital (1) A manager must— (a) keep any money held by the manager which forms part of the Scottish Crown 5 Estate in an income account and a capital account, (b) apportion that money as appropriate between those accounts, and (c) keep those accounts separate from any other accounts kept by the manager. (2) In this Act, references to— (a) an income account are references to an income account kept under subsection (1), 10 (b) a capital account are references to a capital account kept under that subsection. 27 Transfer of sums between income and capital accounts (1) Subsections (2) to (5) apply to managers other than the Scottish Ministers. (2) A manager may, if the Scottish Ministers so direct under section 35(1), transfer a sum of money from the manager’s income account to the manager’s capital account. 15 (3) The Scottish Ministers must specify in the direction— (a) the maximum sum that may be so transferred, or (b) how that sum is to be calculated. (4) A manager may transfer any other sum of money (“the transferred sum”) from the manager’s income account to the manager’s capital account subject to the repayment 20 rule. (5) The repayment rule is that— (a) the manager must, in the same financial year as the transferred sum was transferred to the manager’s capital account, transfer one or more sums of money (“repayment sums”) from the manager’s capital account to the manager’s income 25 account, and (b) the total amount of the repayment sums must be equal to the amount of the transferred sum. (6) Where the Scottish Ministers are a manager, they may transfer such sums as they consider appropriate— 30 (a) from their income account to their capital account, (b) from their capital account to their income account. 28 Treatment of certain sums (1) The manager of a Scottish Crown Estate asset must carry any sum of money received by the manager by way of a premium on the grant of a lease of the asset— 35 (a) to the manager’s income account, if the lease is granted for a period of 20 years or less, (b) to the manager’s capital account, if the lease is granted for a period of over 20 years. 14 Scottish Crown Estate Bill Part 3—Management of Scottish Crown Estate assets (2) Subsections (3) and (4) apply in relation to— (a) any gross annual income received in relation to a Scottish Crown Estate asset by the manager of the asset from or in connection with a mining lease or the working of mines or minerals, 5 (b) any expenses incurred in relation to the asset by the manager in connection with such a lease or working. (3) The manager must carry that income, and charge those expenses, to the manager’s income account and capital account in such proportions as the Scottish Ministers specify in a direction under section 35(1). 10 (4) But where the Scottish Ministers are the manager, they must carry that income, and charge those expenses, to their income account and capital account in such proportions as they may determine. (5) Where the Scottish Ministers make a loan to a manager, the manager must make any repayments of the loan, and any payments of interest on the loan, from the account to 15 which the manager carries the sum of money received under the loan. 29 Transfer of funds between managers (1) A manager may transfer a sum of money— (a) from the manager’s income account to the income account of another manager, (b) from the manager’s capital account to the capital account of another manager. 20 (2) A manager (other than the Scottish Ministers) may make a transfer under subsection (1) only if directed to do so by the Scottish Ministers in a direction under section 35(1). (3) The direction must specify— (a) the sum to be transferred, or (b) how that sum is to be calculated. 25 30 Grants and loans to managers (1) The Scottish Ministers may make grants and loans to a manager in connection with the exercise of the manager’s functions. (2) The manager may not otherwise borrow money in connection with the manager’s functions. 30 (3) A grant or loan under subsection (1) is subject to such conditions (including conditions as to repayment) as the Scottish Ministers may determine. (4) The Scottish Ministers may, from time to time after the grant or loan is made, vary the conditions on which it was made. (5) This section does not apply where the manager is— 35 (a) Crown Estate Scotland (but see article 17 of the Crown Estate Scotland Order), (b) the Scottish Ministers.