Explanatory note

Section 59(2) of the Local Government and Housing Act 1989 provides that the reserved part of a local authority’s capital receipts shall be 75% in the case of receipts in respect of the disposal of certain dwelling-houses and 50% in other cases. Different percentages are specified in regulation 14 of, and Schedule 1 to, the Local Authorities (Capital Finance) Regulations 1990 in the case of the receipts described in that Schedule.

These Regulations provide that the reserved part of receipts received during the period from 13th November 1992 to 31st December 1993 shall be 50% in the case of receipts falling within paragraph 2 of Part I of the Schedule and, subject to certain exceptions, nil per cent in other cases. The exceptions are receipts in respect of the disposal of investments (other than approved investments), receipts falling within paragraph 1, 3, 4, 5 or 6 of Part I, or within Part II, of the Schedule and receipts derived from the disposal of more than 250 dwelling-houses to a single purchaser.