PART IX ANNUAL PAYMENTS AND INTEREST

Mortgage interest relief at source

376 Qualifying borrowers and qualifying lenders.

1

M1Subject 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 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 F1. . . .

4

M2The following bodies are qualifying lenders:—

a

a building society;

b

a local authority;

c

the Bank of England;

d

F2. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

e

a company which is authorised under section 3 or 4 of the M7Insurance Companies Act 1982 to carry on in the United Kingdom any of the classes of business specified in Schedule 1 to that Act;

f

any company to which property and rights belonging to a trustee savings bank were transferred by section 3 of the M3Trustee Savings Bank Act 1985;

F8g

a friendly society;

h

a development corporation within the meaning of the M4New Towns Act 1981 or the M5New Towns (Scotland) Act 1968;

j

the Commission for the New Towns;

k

the Housing Corporation;

F3ka

the Secretary of State if the loan is made by him under section 79 of the M6Housing Associations Act 1985;

l

the Northern Ireland Housing Executive;

m

the Scottish Special Housing Association;

n

F4. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

o

the Church of England Pensions Board;

p

any of the following which is F9for the time being registered under section 376A below, namely, an institution authorised under the M8Banking 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 F9Board to qualify it for inclusion in this paragraph.

F54A

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).

5

F6. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

6

F7. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .