The Local Authorities (Capital Finance) Regulations 1990

Interpretation

10.—(1) In this Part, references to the capital value of a lease are references to the amount which, at the time of the disposal by a local authority of the lease, the authority estimate will be the aggregate of–

(a) any consideration which has been or falls to be received by the authority in respect of the disposal of the lease in the financial year in which they dispose of the lease or at any time before the beginning of that year; and

(b) the value of any consideration which falls to be received by the authority in respect of the disposal 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 received in that year shall be determined by the formula–

where–

• “x” is the amount of the consideration which the authority estimate will be received 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 disposed of the lease 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 received expressed as a year subsequent to the financial year in which the authority disposed of the lease (so that the first of the subsequent financial years is 1, the next financial year is 2, and so on).

(3) Regulation 5(3) applies in relation to any consideration in respect of a lease or under a contract for the purposes of this regulation, and the following provisions of this Part, as it applies in relation to any consideration in respect of a lease for the purposes of Part IV of these Regulations.