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Regulation 5 Interpretation

Changes not yet applied. Later legislation changes this provision in ways not yet written into the text below:

(1)

In this Part, references to the capital cost of a lease are references to the amount which, at the time a local authority become the lessees, the authority estimate will be the aggregate of–

(a)

any consideration which has been or falls to be given by the authority in respect of the lease before or during the financial year in which they become the lessees; and

(b)

the value of any consideration which falls to be given by the authority in respect of the lease in any subsequent financial year.

(2)

For each subsequent financial year referred to in paragraph (1)(b) above, the value of the consideration falling to be given in that year shall be determined by the formula–

x {1+r100 }n

where–

  • “x” is the amount of the consideration which the authority estimate will be given by them in respect of the lease in that financial year;

  • “r” is the percentage rate of discount prescribed for the financial year in which the authority became the lessees by regulations made by the Secretary of State for the purposes of section 49; and

  • “n” is the financial year in which the consideration falls to be given expressed as a year subsequent to the financial year in which the authority became the lessees (so that the first of the subsequent financial years is 1, the next financial year is 2, and so on).

(3)

For the purposes of this regulation, and the following provisions of this Part, in any case where the consideration in respect of a lease consists, in whole or in part,–

(a)

of an undertaking to do or to refrain from doing something at a future time (whether specified or not), or

(b)

of a right to do or to refrain from doing something at such a future time,

that consideration shall be regarded as neither given nor received until the undertaking is performed or, as the case may be, the right is exercised.