The Local Authorities (Capital Finance) (Amendment No. 3) Regulations 1998
Section 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).