PART IX ANNUAL PAYMENTS AND INTEREST
Annual payments
F1C5C8C7C6347A General rule.
F1441
A payment to which this section applies shall not, for the purposes of corporation tax, form part of the income of—
a
any company to which it is made, or
b
any other company.
2
This section applies to any annual payment made by an individual which would otherwise be within the charge to tax under Case III of Schedule D except—
a
a payment of interest;
b
F140. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
c
a payment made for bona fide commercial reasons in connection with the individual’s trade, profession or vocation; and
d
a payment to which section 125(1) applies.
F1422A
F145. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
3
This section applies to a payment made by personal representatives (within the meaning given in section 701(4)) where—
a
the deceased would have been liable to make the payment if he had not died, and
b
this section would have applied to the payment if he had made it.
4
F143. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
5
F143. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
6
References in subsection (2) F146. . . above to an individual include references to a Scottish partnership in which at least one partner is an individual.
7
F141. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
8
F141. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F2347B Qualifying maintenance payments.
F3. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
348 Payments out of profits or gains brought into charge to income tax: deduction of tax.
F4. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
349 Payments not out of profits or gains brought into charge to income tax, and annual interest.
F5. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
349ZAF16Extension of section 349: proceeds of sale of UK patent rights
F6. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
349AF17 Exceptions to section 349 for payments between companies etc
F7. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
349B The conditions mentioned in section 349A(1)
F8. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
349C Directions disapplying section 349A(1)
F9. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
349D Section 349A(1): consequences of reasonable but incorrect belief
F10. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
349EF18 Deductions under section 349(1): payment of royalties overseas
F11. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
350 Charge to tax where payments made under section 349.
F12. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
350AF19 UK public revenue dividends: deduction of tax.
F13. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F14351 Small maintenance payments.
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
352 Certificates of deduction of tax.
F15. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Relief for payments of interest (excluding MIRAS)
C1C2353 General provision.
F201
Where a person pays interest in any year of assessment, that person, if he makes a claim to the relief, shall for that year of assessment be entitled (subject to F21. . . F22section 52 of ITTOIA 2005) to relief in accordance with this section in respect of so much (if any) of the amount of that interest as is eligible for relief under this section by virtue of F23section 365.
F24F251A
Where a person is entitled for a year of assessment to relief under this section in respect of an amount of interest which is eligible for relief by virtue of section 365, the relief is given as a tax reduction for that tax year.
1AA
The amount of the tax reduction is 23% of the amount of the interest.
1AB
The tax reduction is given effect at Step 6 of the calculation in section 23 of ITA 2007.
1B
F26. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
1C
F27. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
1D
F27. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
1E
Where any person is entitled for any year of assessment to relief F28. . . in respect of any amount of interest as is eligible for that relief partly as mentioned in subsection (1A) above and partly as mentioned in F29section 383 of ITA 2007 (relief for interest payments), that amount of interest shall be apportioned between the cases to which each of F30those provisions applies without regard to what parts of the total amount borrowed remain outstanding but according to F31. . . —
a
the proportions of the total amount borrowed which were applied for different purposes; F32. . .
b
F32. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F33and subsection (1A) above or section 383 of ITA 2007 shall apply accordingly to the case in which that subsection or section applies.
1F
F34. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
1G
F34. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
1H
F34. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
2
M1This section does not apply to a payment of relevant loan interest to which section 369 applies.
3
M2Relief under this section shall not be given in respect of—
a
interest on a debt incurred by overdrawing an account or by debiting the account of any person as the holder of a credit card or under similar arrangements; or
b
where interest is paid at a rate in excess of a reasonable commercial rate, so much of the interest as represents the excess.
4
F35. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
5
F35. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
354 Loans to buy land etc.
F36. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
355 Matters excluded from section 354.
F37. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
356 Job-related accommodation.
F38. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
356AF39 Limit on relief for home loans: residence basis.
F40. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
356BF41 Residence basis: married couples.
F42. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
356CF43 Payments to which sections 356A and 356B apply.
F44. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
356DF45 Provisions supplementary to sections 356A to 356C.
F46. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
357 Limit on amount of loan eligible for relief by virtue of section 354.
F47. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F48357A Substitution of security.
F49. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F50357B Treatment of loans following security substitution.
F51. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F52357C Substitution of security: supplemental.
F53. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
358 Relief where borrower deceased.
F54. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
359 Loan to buy machinery or plant.
F55. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
360 Loan to buy interest in close company.
F56. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
360AF57 Meaning of “material interest” in section 360.
F58. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
361 Loan to buy interest in co-operative or employee-controlled company.
F59. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
362 Loan to buy into partnership.
F60. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
363 Provisions supplementary to sections 360 to 362.
F61. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
364 Loan to pay inheritance tax.
F62. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
365 Loan to buy life annuity.
M31
Subject to the following provisions of this section, interest is eligible for relief under section 353 if it is interest on a loan in respect of which the following conditions are satisfied—
F63aa
that the loan was made before 9th March 1999;
a
that the loan was made as part of a scheme under which not less than nine-tenths of the proceeds of the loan were applied to the purchase by the person to whom it was made of an annuity ending with his life or with the life of the survivor of two or more persons (“the annuitants”) who include the person to whom the loan was made;
b
that at the time the loan was made the person to whom it was made or each of the annuitants had attained the age of 65 years;
c
that the loan was secured on land in the United Kingdom or the Republic of Ireland and the person to whom it was made or one of the annuitants owns an estate or interest in that land; and
d
that, if the loan was made after 26th March 1974, the person to whom it was made or each of the annuitants F64used the land on which it was secured as his only or main residence immediately before 9th March 1999 .
F651AA
Where—
a
a loan made on or after 9th March 1999 was made in pursuance of an offer made by the lender before that date, and
b
the offer was either in writing or evidenced by a note or memorandum made by the lender before that date,
the loan shall be deemed for the purposes of subsection (1)(aa) above to have been made before that date.
F661AB
Subject to subsection (1AC) below, the conditions in paragraphs (aa) and (a) of subsection (1) above shall be treated as satisfied in relation to a loan (“the new loan”) if—
a
the new loan was made on or after the day on which the Finance Act 1999 was passed;
b
the new loan was made as part of a scheme (“the scheme”) under which the whole or any part of the proceeds of the loan was used to defray money applied in paying off another loan (“the old loan”); and
c
the conditions in subsection (1) above were, or were treated by virtue of this subsection as, satisfied with respect to the old loan.
1AC
If only part of the proceeds of the new loan was used to defray money applied in paying off the old loan, subsection (1AB) above applies only if, under the scheme, not less than nine-tenths of the remaining part of the proceeds of the new loan was applied to the purchase by the person to whom it was made of an annuity ending with his life or with the life of the survivor of two or more persons who include him.
1AD
In subsection (1AC) above “the remaining part” means the part of the proceeds of the new loan that was not used to defray money applied in paying off the old loan.
F67F681A
The condition in subsection (1)(d) above shall be treated as satisfied in relation to a loan if—
a
the person to whom the loan was made, or any of the annuitants, ceased to use the land as his only or main residence at a time falling within the period of twelve months ending with 8th March 1999, and
b
the intention at that time of the person to whom the loan was made, or each of the annuitants owning an estate or interest in the land, was to take steps, before the end of the period of twelve months after the day on which the land ceased to be so used, with a view to the disposal of his estate or interest.
1B
If it appears to the Board reasonable to do so, having regard to all the circumstances of a particular case, they may direct that in relation to that case subsection (1A) above shall have effect as if for the reference to 12 months there were substituted a reference to such longer period as meets the circumstances of that case.
2
Interest is not eligible for relief by virtue of this section unless it is payable by the person to whom the loan was made or by one of the annuitants.
3
If the loan was made after 26th March 1974 interest on it is eligible for relief by virtue of this section only to the extent that the amount on which it is payable does not exceed F69the sum of £30,000; and if the interest is payable by two or more persons the interest payable by each of them is so eligible only to the extent that the amount on which it is payable does not exceed such amount as bears to F70that sum the same proportion as the interest payable by him bears to the interest payable by both or all of them.
366 Information.
1
M4A person who claims relief under section 353 in respect of any payment of interest shall furnish to the inspector a statement in writing by the person to whom the payment is made, showing—
a
the date when the debt was incurred;
b
the amount of the debt when incurred;
c
the interest paid in the year of assessment for which the claim is made F71. . . ; and
d
the name and address of the debtor.
2
M5Where any such interest as is mentioned in section 353 is paid, the person to whom it is paid shall, if the person who pays it so requests in writing, furnish him with such statement as regards that interest as is mentioned in subsection (1) above; and the duty imposed by this subsection shall be enforceable at the suit or instance of the person making the request.
3
Subsections (1) and (2) above do not apply to interest paid to a building society, or to a local authority.
367 Provisions supplementary to sections 354 to 366.
1
F72. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
2
F73. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
3
F73. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
4
F73. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
C35
367AF76Alternative finance arrangements
1
Sections 353 and 365 have effect as if—
a
purchase and resale arrangements involved the making of a loan, and
b
alternative finance return were interest.
2
Section 366 has effect accordingly.
3
In this section—
“alternative finance return” has the meaning given in sections 564I to 564L of ITA 2007, and
“purchase and resale arrangements” means arrangements to which section 564C of ITA 2007 applies.
368 Exclusion of double relief etc.
F75. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Mortgage interest relief at source
369 Mortgage interest payable under deduction of tax.
C9C41
F781A
In subsection (1) above “the applicable percentage” means F7923 per cent..
2
Where a sum is deducted under subsection (1) above from a payment of relevant loan interest—
a
the person to whom the payment is made shall allow the deduction on receipt of the residue;
b
the borrower shall be acquitted and discharged of so much money as is represented by the deduction as if the sum had been actually paid; and
c
the sum deducted shall be treated as income tax paid by the person to whom the payment is made.
F803
The following payments, that is to say—
a
payments of relevant loan interest to which this section applies, and
b
payments which would be such payments but for section 373(5),
shall not be allowable as deductions for any purpose of the Income Tax Acts except in so far as they fall to be treated as such payments by virtue only of section 375(2) and would be allowable apart from this subsection.
6
M8Any person by whom a payment of relevant loan interest to which this section applies is received shall be entitled to recover from the Board, in accordance with regulations, an amount which by virtue of subsection (2)(c) above is treated as income tax paid by him; and any amount so recovered shall be treated for the purposes of the Tax Acts in like manner as the payment of relevant loan interest to which it relates.
F817
The following provisions of the Management Act, namely—
F82a
section 29(1)(c) (excessive relief) as it has effect apart from section 29(2) to (10) of that Act;
b
section 30 (tax repaid in error etc.) F83apart from subsection (1B) ,
c
F84section 86 (interest), and
d
section 95 (incorrect return or accounts),
shall apply in relation to an amount which is paid to any person by the Board as an amount recoverable in accordance with regulations made by virtue of subsection (6) above but to which that person is not entitled as if it were income tax which ought not to have been repaid and, where that amount was claimed by that person, as if it had been repaid F85as respects a chargeable period as a relief which was not due.
F868
In the application of section 86 of the Management Act by virtue of subsection (7) above in relation to sums due and payable by virtue of an assessment made for the whole or part of a year of assessment (“the relevant year of assessment”) under section 29(1)(c) or 30 of that Act, as applied by that subsection, the relevant date—
a
is 1st January in the relevant year of assessment in a case where the person falling within subsection (6) above has made a relevant interim claim; and
b
in any other case, is the later of the following dates, that is to say—
i
1st January in the relevant year of assessment; or
ii
the date of the making of the payment by the Board which gives rise to the assessment.
9
In this section—
“financial year”, in relation to any person, means a financial year of that person for the purposes of the relevant regulations;
“interim claim” means an interim claim within the meaning of the relevant regulations;
“relevant interim claim” means, in relation to an assessment made for a period coterminous with, or falling wholly within, a person’s financial year, an interim claim made for a period falling wholly or partly within that financial year; and
“the relevant regulations” means regulations made under section 378(3) for the purposes of subsection (6) above.
370 Relevant loan interest.
1
2
Subject to subsection (4) below, this subsection applies to interest if, disregarding section 353(2) F89and any other provision applying to interest falling to be treated as relevant loan interest—
a
it is interest falling within section F90. . . 365; and
b
c
F93. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
3
F94. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
4
F94. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
5
6
F94. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F966A
F97. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
7
F94. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F98371 Second loans.
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
372 Home improvement loans.
F99. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
373 Loans in excess of the qualifying maximum, and joint borrowers.
1
2
None of the interest on a limited loan is relevant loan interest unless—
a
the loan is made on or after 6th April 1987; or
b
the qualifying lender to whom the interest is payable has given notice to the Board in accordance with regulations that he is prepared to have limited loans of a description which includes that limited loan brought within the tax deduction scheme.
3
F101. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
4
F101. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
5
6
M13Where a loan on which interest is payable by the borrower was made jointly to the borrower and another person who is not the borrower’s husband or wife, the interest on the loan is not relevant loan interest unless—
a
each of the persons to whom the loan was made is a qualifying borrower; and
b
in relation to each of them considered separately, the whole of that interest is relevant loan interest, in accordance with F103section 370 and this section.
7
In subsection (6) above references to the borrower’s husband or wife do not include references to a separated husband or wife F104. . . .
374 Conditions for application of section 369.
1
M14Section 369 does not apply to any relevant loan interest unless—
a
in the case of a loan of a description specified by regulations for the purposes of this paragraph, the borrower or, in the case of joint borrowers, each of them has given notice to the lender in the prescribed form certifying—
i
that he is a qualifying borrower; and
ii
that the interest is relevant loan interest; and
iii
such other matters as may be prescribed; or
b
the Board have given notice to the lender and the borrower that the interest may be paid under deduction of tax; or
c
F105. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
d
M15the loan to which the interest relates is of a description specified by regulations for the purposes of this paragraph and was made—
i
if sub-paragraph (2) of paragraph 2 of Schedule 7 to the Finance Act 1982 applied to interest on the loan which became due on or after a date earlier than 6th April 1983, being a date specified by the Board in pursuance of sub-paragraph (5) of that paragraph, before that earlier date; or
ii
if the qualifying lender is a building society or a local authority, before 1st April 1983; or
iii
if sub-paragraphs (i) and (ii) above do not apply and the interest falls within section 370(2), before 6th April 1983.
2
M16Where notice has been given as mentioned in paragraph (a) or (b) of subsection (1) above, section 369 applies to any relevant loan interest to which the notice relates and which becomes due on or after the relevant date, as defined by subsection (3) below; and in a case falling within paragraph F106. . . (d) of subsection (1) above, section 369 applies to the relevant loan interest referred to in that paragraph.
3
In subsection (2) above “the relevant date” means—
a
in the case of a notice under subsection (1)(a) above, the date the notice is given, and
b
in the case of a notice under subsection (1)(b) above, a date specified in the notice as being the relevant date (which may be earlier than the date so specified as the date from which the interest may be paid under deduction of tax).
374AF137 Interest which never has been relevant loan interest etc.
1
This section applies where, in the case of any loan, interest on the loan never has been relevant loan interest or the borrower never has been a qualifying borrower.
2
Without prejudice to subsection (3) below, in relation to a payment of interest—
a
as respects which either of the conditions mentioned in paragraphs (a) and (b) of section 374(1) is fulfilled, and
b
from which a deduction was made as mentioned in section 369(1),
section 369 shall have effect as if the payment of interest were a payment of relevant loan interest made by a qualifying borrower.
3
Nothing in subsection (2) above shall be taken as regards the borrower as entitling him to make any deduction or to retain any amount deducted and, accordingly, where any amount has been deducted, he shall be liable to make good that amount and an officer of the Board may make such assessments as may in his judgment be required for recovering that amount.
4
The Management Act shall apply to an assessment under subsection (3) above as if it were an assessment to income tax for the year of assessment in which the deduction was made F107. . . .
5
If the borrower fraudulently or negligently makes any false statement or representation in connection with the making of any deduction, he shall be liable to a penalty not exceeding the amount deducted.
375 Interest ceasing to be relevant loan interest, etc.
1
M17If at any time—
a
the interest on a loan ceases to be relevant loan interest; or
b
a person making payments of relevant loan interest ceases to be a qualifying borrower;
the borrower shall give notice of the fact to the lender.
2
Without prejudice to subsection (3) below, in relation to a payment of interest—
a
which is due after the time referred to in subsection (1) above and before the date on which notice is given under that subsection, and
F108aa
as respects which any of the conditions mentioned in section 374(1) is fulfilled, and
b
from which a deduction was made as mentioned in section 369(1),
section 369 shall have effect as if the payment were a payment of relevant loan interest made by a qualifying borrower.
3
Nothing in subsection (2) above F109shall be taken as regards the borrower as entitling him to any deduction or to retain any amount deducted and, accordingly, where any amount that has been deducted exceeds the amount which ought to have been deducted, he shall be liable to make good the excess and an inspector may make such assessments as may in his judgment be required for recovering the excess.
F1104
The Management Act shall apply to an assessment under subsection (3) above F111as if it were an assessment to income tax for the year of assessment in which the deduction was made.
4A
If there is any unreasonable delay in the giving of a notice under subsection (1) above, the borrower shall be liable to a penalty not exceeding so much of the aggregate amount that he is liable to make good under subsection (3) above as is attributable to that delay.
5
M18If, as a result of receiving a notice under subsection (1) above or otherwise, a qualifying lender has reason to believe that any interest is no longer relevant loan interest or that a borrower is no longer a qualifying borrower, the lender shall furnish the Board with such information as is in his possession with respect to those matters.
6
M19Where it appears to the Board that any of the provisions of sections 370 to 373 is not or may not be fulfilled with respect to any interest, or that a qualifying borrower has or may have ceased to be a qualifying borrower, they shall give notice of that fact to the lender and the borrower specifying the description of relevant loan interest concerned or, as the case may be, that the borrower has or may have ceased to be a qualifying borrower.
7
Section 369 shall not apply to any payment of relevant loan interest of a description to which a notice under subsection (6) above relates and which becomes due or is made after such date as may be specified in the notice and before such date as may be specified in a further notice given by the Board to the lender and the borrower.
8
M20In any case where—
a
section 369 applies to any relevant loan interest by virtue of a notice under section 374(1)(b), and
b
the relevant date specified in the notice is earlier than the date from which the interest begins to be paid under deduction of tax, and
c
a payment of that interest was made on or after the relevant date but not under deduction of tax,
regulations may provide for a sum to be paid by the Board of an amount equal to that which the borrower would have been able to deduct from that payment by virtue of section 369 if it had been made after the relevant date.
F1128A
In any case where an amount to which a person is not entitled is paid to him by the Board in pursuance of regulations made by virtue of subsection (8) above, regulations may—
a
provide for an officer of the Board to make such assessments as may in his judgment be required for recovering that amount from that person; and
b
make provision corresponding to that made by subsection (4A) above and subsections (4) and (5) of section 374A.
F1138B
Subsections (1), (5) and (6) above shall not apply where interest ceases to be relevant loan interest by virtue of section 38 of the Finance Act 1999.
9
F114. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
10
F114. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
375AF138 Option to deduct interest for the purposes of Schedule A.
F115. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
376 Qualifying borrowers and qualifying lenders.
1
M21Subject 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 F116an 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 F117. . . .
4
M22The following bodies are qualifying lenders:—
a
a building society;
b
a local authority;
c
the Bank of England;
d
F118. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F119e
a person who has permission under Part 4 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 M23Trustee Savings Bank Act 1985;
g
F120. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
h
j
the Commission for the New Towns;
k
the Housing Corporation;
F121ka
the Secretary of State if the loan is made by him under section 79 of the M26Housing Associations Act 1985;
l
the Northern Ireland Housing Executive;
m
the Scottish Special Housing Association;
n
F122. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
o
the Church of England Pensions Board;
F123p
any body which is for the time being registered under section 376A.
F1244A
F125. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
5
F126. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
6
F127. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F139376A The register of qualifying lenders.
1
The Board shall maintain, and publish in such manner as they consider appropriate, a register for the purposes of section 376(4).
F1281A
The following are entitled to be registered—
a
a person who has permission under Part 4 of the Financial Services and Markets Act 2000—
i
to accept deposits; or
ii
to effect or carry out contracts of general insurance;
b
a 90 per cent subsidiary of a person mentioned in—
i
section 376(4)(e); or
ii
paragraph (a) above;
c
any other body whose activities and objects appear to the Board to qualify it for registration.
2
If the Board are satisfied that an applicant for registration is entitled to be registered, they may register the applicant generally or in relation to any description of loan specified in the register, with effect from such date as may be so specified; and a body which is so registered shall become a qualifying lender in accordance with the terms of its registration.
3
The registration of any body may be varied by the Board—
a
where it is general, by providing for it to be in relation to a specified description of loan, or
b
where it is in relation to a specified description of loan, by removing or varying the reference to that description of loan,
and where they do so, they shall give the body written notice of the variation and of the date from which it is to have effect.
4
If it appears to the Board at any time that a body which is registered under this section would not be entitled to be registered if it applied for registration at that time, the Board may by written notice given to the body cancel its registration with effect from such date as may be specified in the notice.
5
The date specified in a notice under subsection (3) or (4) above shall not be earlier than the end of the period of 30 days beginning with the date on which the notice is served.
6
Any body which is aggrieved by the failure of the Board to register it under this section, or by the variation or cancellation of its registration, may, by notice given to the Board before the end of the period of 30 days beginning with the date on which the body is notified of the Board’s decision, require the matter to be determined by the Special Commissioners; and the Special Commissioners shall thereupon hear and determine the matter in like manner as an appeal.
377 Variation of terms of repayment of certain loans.
F129. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
378 Supplementary regulations. C10
M271
F130. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
2
F130. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
3
The Board may by regulations make provision—
a
for the purposes of any provision of sections 369 to F131376A which relates to any matter or thing to be specified by or done in accordance with regulations;
b
for the application of those sections in relation to loan interest paid by personal representatives and trustees;
c
with respect to the furnishing of information by borrowers or lenders, including, in the case of lenders, the inspection of books, documents and other records on behalf of the Board;
d
for, and with respect to, appeals to the General Commissioners or the Special Commissioners against the refusal of the Board to issue a notice under section 374(1)(b) or the issue of a notice under section 375(6) or (7); and
e
generally for giving effect to sections 369 to F131376A.
4
F130. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
379
In sections 369 to 378—
F132“contracts of general insurance” means contracts which fall within Part I of Schedule 1 to the Financial Services and Markets Act 2000 (Regulated Activities) Order 2001 and “contracts of long-term insurance” means contracts which fall within Part II of that Schedule;
“prescribed” F133. . . means prescribed by the Board;
“qualifying borrower” has the meaning given by section 376(1) to (3);
“qualifying lender” has the meaning given by section 376(4) F134. . . ;
“regulations” F135 . . . means regulations made by the Board under section 378;
“relevant loan interest” has the meaning given by section 370(1);
F136“separated” means separated under an order of a court of competent jurisdiction or by deed of separation or in such circumstances that the separation is likely to be permanent.