M1(1)Where any interest paid by persons as the personal representatives of a deceased person or as the trustees of a settlement made by his will would, on the assumptions required by this section, be eligible for relief under section 353 by virtue of section 354 above and, in a case where subsection (3) below applies, one of the conditions in subsection (4) below is satisfied, that interest shall be so eligible notwithstanding sections 354 to 357.
(2)For the purposes of subsection (1) above it shall be assumed that the deceased would have survived and been the borrower.
(3)If, at his death,—
(a)the land, caravan or house-boat concerned was used as his only or main residence, or
(b)it was used by him as a residence or was intended to be used in due course as his only or main residence and, in either case, he resided in job-related living accommodation;
that shall be assumed for the purposes of subsection (1) above to have continued to be the case.
(4)The conditions referred to in subsection (1) above are—
(a)that, at the time the interest is paid, the land, caravan or house-boat concerned is used as the only or main residence of the deceased’s widow or widower [F1or of any dependent relative of the deceased];
(b)that, at that time, it is used by the deceased’s widow or widower as a residence or is intended to be used in due course as his or her only or main residence and, in either case, he or she resides in job-related living accommodation.
(4A)F2. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(5)In this section “personal representatives” has the meaning given by section 701; and subsections (3) to (6) of section 356 apply in relation to this section as they apply in relation to that.
Textual Amendments
F1 Words which cease to have effect in relation to certain payments of interest made on or after 6April 1988—see 1988(F) s.44(4).
F2S. 358(4A) repealed (with effect in accordance with s. 42(3)-(5) of the repealing Act) by Finance Act 1995 (c. 4), Sch. 29 Pt. 8(2), Note
Marginal Citations
M1Source-1974 Sch.1 8; 1977 Sch.8 10