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 F1an 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)

M2The 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 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 M3Trustee Savings Bank Act 1985;

(g)

F5. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(h)

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

F6(j)

the Homes and Communities Agency;

(k)

the Housing Corporation;

F7(ka)

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)

F8. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(o)

the Church of England Pensions Board;

F9(p)

any body which is for the time being registered under section 376A.

F10(4A)

F11. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(5)

F12. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(6)

F13. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .