The Local Authorities (Capital Finance) (Amendment) Regulations 1999
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. The Local Authorities (Capital Finance) Regulations 1997 (the “1997 Regulations”) provide for different descriptions of capital receipts to be treated as reduced for the purposes of determining the reserved part. Regulation 4 amends the 1997 Regulations by inserting provision for a further reduction which a local authority in England may make in capital receipts derived from a disposal of dwellings. The reduction is determined by reference to costs incurred by the authority in the financial year preceding the year of the disposal in acquiring relevant interests in dwellings. An interest is a relevant interest if, among other things, it was previously held by the authority, another local authority, a new town corporation, a housing action trust or an urban development corporation.