PART IX ANNUAL PAYMENTS AND INTEREST

Mortgage interest relief at source

376 Qualifying borrowers and qualifying lenders.
(1) Subject to subsection (2) below, an individual is a qualifying borrower with respect to the interest on any loan.
Source-1982 Sch.7 13
(2) In relation to interest paid at a time when the borrower or the borrower’s husband or wife holds an office or employment in respect of the emoluments of which he or she would but for some special exemption or immunity from tax be chargeable to tax under Case I, II or III of Schedule E, 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 . . . .
Words in s. 376(3) repealed (with effect in accordance with Sch. 4 para. 18(5), Sch. 20 Pt. 3(7) Note 4 of the repealing Act) by Finance Act 1999 (c. 16), Sch. 4 para. 11(a), Sch. 20 Pt.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)
(4) The following bodies are qualifying lenders:—
(a) a building society;
(b) a local authority;
(c) the Bank of England;
(d) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
S. 376(4)(d) repealed (26.3.2001) by The Postal Services Act 2000 (Consequential Modifications No. 1) Order 2001 (S.I. 2001/1149), arts. 1(2), 3(2), Sch. 2
(e) a company which is authorised under section 3 or 4 of the Insurance Companies Act 1982 to carry on in the United Kingdom any of the classes of business specified in Schedule 1 to that Act;
1982 c. 50.
(f) any company to which property and rights belonging to a trustee savings bank were transferred by section 3 of the Trustee Savings Bank Act 1985;
1985 c. 50.
(g) a friendly society;
S. 376(4)(g) substituted (19.2.1993) by Finance (No. 2) Act 1992 (c. 48), s. 56, Sch. 9 paras. 3(2), 22; S.I. 1993/236, art.2
(h) a development corporation within the meaning of the New Towns Act 1981 or the New Towns (Scotland) Act 1968;
1981 c.64.
1968 c. 16.
(j) the Commission for the New Towns;
(k) the Housing Corporation;
(ka) the Secretary of State if the loan is made by him under section 79 of the Housing Associations Act 1985;
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
1985 c. 69.
(l) the Northern Ireland Housing Executive;
(m) the Scottish Special Housing Association;
(n) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
S. 376(4)(n) repealed (1.10.1998) by Government of Wales Act 1998 (c. 38), ss. 152, 158(1), Sch. 18 Pt. 4; S.I. 1998/2244, art. 4
(o) the Church of England Pensions Board;
(p) any of the following which is for the time being registered under section 376A below, namely, an institution authorised under the Banking Act 1987, a company which is authorised as mentioned in paragraph (e) above to carry on in the United Kingdom any of the classes of business specified in Schedule 2 to the Insurance Companies Act 1982, and a 90 per cent. subsidiary of any such institution or company or of a company within paragraph (e) above and any other body whose activities and objects appear to the Board to qualify it for inclusion in this paragraph.
Words in s. 376(4)(p) substituted (3.5.1994) by Finance Act 1994 (c. 9), s. 142(1)(a)
1987 c. 22.
Source-1982 Sch.7 14(1); 1983 s.17(3)
(4A) In subsection (4)(g) above, “friendly society” means—
(a) a friendly society within the meaning of the Friendly Societies Act 1992 (including any society that by virtue of section 96(2) of that Act is to be treated as a registered friendly society within the meaning of that Act), or
(b) a registered branch within the meaning of that Act (including any branch that by virtue of section 96(3) of that Act is to be treated as a registered branch within the meaning of that Act).
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
(5) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
S. 376(5) repealed (3.5.1994) by Finance Act 1994 (c. 9), s. 142(1)(b), Sch. 26 Pt. 5(19)
(6) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
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)