{
  "url": "https://openlegislation.uk/local-authorities-capital-finance-amendment-no-3-regulations-1998/note",
  "json_url": "https://openlegislation.uk/local-authorities-capital-finance-amendment-no-3-regulations-1998/note.json",
  "legislation": "uksi/1998/1937",
  "legislation_title": "The Local Authorities (Capital Finance) (Amendment No. 3) Regulations 1998",
  "legislation_url": "https://openlegislation.uk/local-authorities-capital-finance-amendment-no-3-regulations-1998",
  "path": "note",
  "kind": "note",
  "number": null,
  "heading": "Explanatory note",
  "text": "(This note is not part of the Regulations)\nSection 59 of the Local Government and Housing Act 1989 requires a local authority to set aside part of a capital receipt (“the reserved part”) as provision to meet credit liabilities. Regulations 5 to 10 amend the Local Authorities (Capital Finance) Regulations 1997 (the “1997 Regulations”) to provide that the reserved part in the case of capital receipts which are not derived from a disposal of housing shall, subject to specified exceptions, be nil per cent. (the “nil per cent. rule”). For this purpose, housing means any land, house or other building in respect of which sums fall to be credited or debited in accordance with section 74 (duty to keep Housing Revenue Account).\nThe exceptions include—\n(a) capital receipts derived from a disposal of share or loan capital (other than specified descriptions of share or loan capital, including capital in a bus company or an airport company and capital acquired in consideration for a disposal of non-housing assets);\n(b) capital receipts derived from a disposal of investments other than share or loan capital; and\n(c) sums received by a local authority, as a designated authority, under regulation 8(1) of the Local Government Changes for England (Payments to Designated Authorities) (Minimum Revenue Provision) Regulations 1995 (the “1995 Regulations”).\nRegulation 12 revokes regulations 60 and 70 of the 1997 Regulations because the capital receipt described in regulation 60 is not among the exceptions to the nil per cent. rule. Regulations 12 also revokes regulations 71, 73, 74 and 75 of the 1997 Regulations which are now spent, and a provision of the 1995 Regulations which is superseded by these Regulations.",
  "extent": null,
  "status": null,
  "version": "current",
  "annotations": [],
  "outstanding_effects": [],
  "provenance": {
    "source": "legislation.gov.uk",
    "source_url": "https://www.legislation.gov.uk/uksi/1998/1937/note",
    "retrieved_at": "2026-10-29T11:23:44.835800+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."
}