Local Government Act 1986

8 Certain transfers treated as not giving rise to capital receipts

(1) A disposal by a local authority of their interest as mortgagee of land shall not, in the following circumstances, be treated as giving rise to a capital receipt for the purposes of Part VIII of the [1980 c. 65.] Local Government, Planning and Land Act 1980 (controls on capital expenditure).

(2) The circumstances are that, under the terms of the disposal or of any arrangement entered into in connection with the disposal—

(a) any benefits of burdens of the mortgagee are retained by, or may be transferred to, the local authority, or

(b) the transferee can call on the local authority to re acquire any interest transferred or to redeem the mortgage, or

(c) the consideration for the transfer is other than a cash sum determined at the date of the transfer, or

(d) the transfer is carried out in consideration of some other transaction or the local authority may be required to enter into an agreement with a third party.

(3) The Secretary of State may by regulations amend subsection (2) or provide for other circumstances in which the disposal by a local authority of their interest as mortgagee of land is not to be treated as giving rise to a capital receipt for the purposes of Part VIII of the Local Government, Planning and Land Act 1980.

(4) Regulations under this section shall be made by statutory instrument which shall be subject to annulment in pursuance of a resolution of either House of Parliament.