PART IXANNUAL PAYMENTS AND INTEREST

Mortgage interest relief at source

374Conditions for application of section 369

1

Section 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

it is interest to which section 370(3) applies; or

d

the 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 [1982 c. 39.] 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

Where 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 (c) or (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).