Editing Sinking fund (section)

{{Short description|Setting aside revenue for capital expense or long-term debt}}
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[[File:City of Milan 1927.jpg|thumb|Sinking Fund bond of the City of Milan, issued 1 April 1927.]]
A '''sinking fund''' is a fund established by an [[economic entity]] by setting aside revenue over a period of time to fund a future [[capital expense]], or repayment of a long-term [[debt]].

In North America and elsewhere where it is common for government entities and private corporations to raise funds through the issue of [[bond (finance)|bonds]], the term is normally used in this context. However, in the United Kingdom<ref>{{cite web|url=https://www.gov.uk/leasehold-property/service-charges-and-other-expenses|title=Leasehold property|access-date=15 October 2018}}</ref> and elsewhere<ref>{{cite web |url=http://www.washingtonbrown.com.au/sinking-funds |url-status=dead |archive-url=https://web.archive.org/web/20120205235417/http://www.washingtonbrown.com.au/sinking-funds |archive-date=5 February 2012 |title=Sinking Funds |website=Washington Brown |access-date=31 January 2024}}{{cbignore}}</ref> where the issue of bonds (other than government bonds) is unusual, and where long-term leasehold tenancies are common, the term is only normally used in the context of replacement or renewal of capital assets, particularly the common parts of buildings.