Income and Corporation Taxes Act 1988

376 Qualifying borrowers and qualifying lenders. U.K.

(1) M1 Subject to subsection (2) below, an individual is a qualifying borrower with respect to the interest on any loan.

(2) In relation to interest paid at a time when the borrower or the borrower’s husband or wife holds [F1 an office or employment which would, but for some special exemption or immunity from tax, be a taxable employment under Part 2 of ITEPA 2003 (as defined by section 66(3) of that Act)], the borrower is not a qualifying borrower.

(3) In subsection (2) above references to the borrower’s husband or wife do not include references to a separated husband or wife F2 . . . .

(4) M2 The following bodies are qualifying lenders:—

(a) a building society;

(b) a local authority;

(c) the Bank of England;

(d) F3 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

[F4 (e) a person who has permission under [F5 Part 4A] of the Financial Services and Markets Act 2000 to effect or carry out contracts of long-term insurance;]

(f) any company to which property and rights belonging to a trustee savings bank were transferred by section 3 of the M3 Trustee Savings Bank Act 1985;

(g) F6 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(h) a development corporation within the meaning of the M4 New Towns Act 1981 or the M5 New Towns (Scotland) Act 1968;

[F7 (j) the Homes and Communities Agency;]

[F8 (ja) the Greater London Authority so far as exercising its housing or regeneration functions or its new towns and urban development functions;]

[F9 (k) the Regulator of Social Housing,]

[F10 (ka) the Secretary of State if the loan is made by him under section 79 of the M6 Housing Associations Act 1985;]

(l) the Northern Ireland Housing Executive;

(m) the Scottish Special Housing Association;

(n) F11 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(o) the Church of England Pensions Board;

[F12 (p) any body which is for the time being registered under section 376A.]

[F13 (4A) F14 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .]

(5) F15 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(6) F16 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Textual Amendments

F1 Words in s. 376(2) substituted (6.4.2003 with effect in accordance with s. 723(1) of the amending Act) by Income Tax (Earnings and Pensions) Act 2003 (c. 1), Sch. 6 para. 52 (with Sch. 7)

F2 Words in s. 376(3) repealed (with effect in accordance with Sch. 4 para. 18(5), Sch. 20 Pt. 3(7) Note 4 of the repealing Act) by Finance Act 1999 (c. 16), Sch. 4 para. 11(a), Sch. 20 Pt. 3(7)

F3 S. 376(4)(d) repealed (26.3.2001) by The Postal Services Act 2000 (Consequential Modifications No. 1) Order 2001 (S.I. 2001/1149), arts. 1(2), 3(2), Sch. 2

F4 S. 376(4)(e) substituted (1.12.2001 in accordance with art. 1(2)(a) of the amending Order) by The Financial Services and Markets Act 2000 (Consequential Amendments) (Taxes) Order 2001 (S.I. 2001/3629), art. 23(2)(a)

F5 Words in s. 376(4)(e) substituted (1.4.2013) by Financial Services Act 2012 (c. 21), s. 122(3), Sch. 18 para. 58(3) (with Sch. 20); S.I. 2013/423, art. 3, Sch.

F6 S. 376(4)(g) omitted (1.12.2001 in accordance with art. 1(2)(a) of the amending Order) by virtue of The Financial Services and Markets Act 2000 (Consequential Amendments) (Taxes) Order 2001 (S.I. 2001/3629), art. 23(2)(b)

F7 S. 376(4)(j) substituted (1.12.2008) by Housing and Regeneration Act 2008 (c. 17), s. 325(1), Sch. 8 para. 42; S.I. 2008/3068, art. 2(1)(w) (with arts. 6-13)

F8 S. 376(4)(ja) inserted (1.4.2012) by Localism Act 2011 (c. 20), s. 240(2), Sch. 19 para. 24; S.I. 2012/628, art. 6(1) (with arts. 9-20)

F9 S. 376(4)(k) substituted (1.4.2010) by Housing and Regeneration Act 2008 (c. 17), s. 325(1), Sch. 9 para. 12; S.I. 2010/862, art. 2 (with Sch.)

F10 S. 376(4)(ka) substituted (1.11.1998) by Government of Wales Act 1998 (c. 38), ss. 140(2), 158(1), Sch. 16 para. 55; S.I. 1998/2244, art. 5

F11 S. 376(4)(n) repealed (1.10.1998) by Government of Wales Act 1998 (c. 38), ss. 152, 158(1), Sch. 18 Pt. 4; S.I. 1998/2244, art. 4

F12 S. 376(4)(p) substituted (1.12.2001 in accordance with art. 1(2)(a) of the amending Order) by The Financial Services and Markets Act 2000 (Consequential Amendments) (Taxes) Order 2001 (S.I. 2001/3629), art. 23(2)(c)

F13 S. 376(4A) inserted (19.2.1993) by Finance (No. 2) Act 1992 (c. 48), s. 56, Sch. 9 paras. 3(3), 22; S.I. 1993/236, art. 2

F14 S. 376(4A) omitted (1.12.2001 in accordance with art. 1(2)(a) of the amending Order) by virtue of The Financial Services and Markets Act 2000 (Consequential Amendments) (Taxes) Order 2001 (S.I. 2001/3629), art. 23(3)

F15 S. 376(5) repealed (3.5.1994) by Finance Act 1994 (c. 9), s. 142(1)(b), Sch. 26 Pt. 5(19)

F16 S. 376(6) repealed (with effect in accordance with Sch. 4 para. 18(5), Sch. 20 Pt. 3(7) Note 4 of the repealing Act) by Finance Act 1999 (c. 16), Sch. 4 para. 11(b), Sch. 20 Pt. 3(7)

Marginal Citations

M1 Source-1982 Sch.7 13

M2 Source-1982 Sch.7 14(1); 1983 s.17(3)

M3 1985 c. 50.

M4 1981 c.64.

M5 1968 c. 16.

M6 1985 c. 69.