# The Local Authorities (Capital Finance) Regulations 1997, Regulation 18: Leases and contracts of small value

Extent: E+W
Status: prospective

(1) A lease or a contract is excluded from section 48 if the authority estimate, at the time they become the lessees or enter into the contract, that the total value of the consideration which will fall to be given by them in respect of—
(a) the lease or the contract; or
(b) the lease or the contract taken together with any other arrangement (whether a lease or a contract) which they have entered into with the same person, or an associate of his, in the same financial year,
will not exceed £12,000.
(2) For the purposes of paragraph (1)—
(a) a local authority shall be deemed to have entered into another arrangement with the same person, or an associate of his, if they have acquired a lease under which that person or associate is the lessor; and
(b) two persons are associates of each other if, for the purposes of the Companies Act 1985, one of them is a subsidiary of the other, or they are both subsidiaries of some other person.

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Source: https://www.legislation.gov.uk/uksi/1997/319/regulation/18 (the official version)
Page: https://openlegislation.uk/local-authorities-capital-finance-regulations-1997/regulation-18
Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives.