Explanatory note

These Regulations further amend the Local Authorities (Capital Finance) Regulations 1990.

Regulation 2 of those Regulations is amended to provide that a local authority’s expenditure on the payment of interest included in the amount of a disposal cost attributable to a property acquired under Part IV of the Housing Act 1988 (c. 50) shall be expenditure for capital purposes.

Regulation 12 is amended to provide that a sum in respect of the proceeds of disposal of premises which the Secretary of State has required the governing body of a grant-maintained school to pay to the local authority who are the former maintaining authority shall be a capital receipt; and regulation 14 and Schedule 1 are amended to make provision for determining the reserved part of such a capital receipt.

Regulation 14 and Schedule 1 are also amended to provide for the reserved part of capital receipts deriving from the disposal of mortgages or loans involving an advance to a housing association which was made for the purposes of expenditure in respect of which the association received grant.

Regulation 26 is amended, and a new Schedule 6 is inserted, to provide, in respect of financial years beginning on or after 1st April 1992, for the amount in respect of principal which is taken into account in determining an authority’s minimum revenue provision for a year. The provision takes account, primarily, of the effects of the commutation of contributions, grants and subsidies which took place on 1st October 1992 under section 157 of the Local Government and Housing Act 1989.