Finance Act 1988

Expensive dwelling-houses U.K.

13 (1) Section 50 of this Act does not apply to a dwelling-house the market value of which exceeds—

(a) in the case of a dwelling-house in Greater London, £125,000;

(b) in any other case, £85,000.

(2) The market value of a dwelling-house at any date (“the valuation date”) shall be taken to be the price which, at the relevant date, it might reasonably have been expected to fetch on a sale in the open market—

[F1 (a) on the assumption that the dwelling-house was in the same state as at the valuation date;]

(b) on the assumptions as to title mentioned in sub-paragraph (4) below;

and in this paragraph “the relevant date” means the date of the issue of the shares or, if later, the date when the company or any of its subsidiaries first acquired an interest in the dwelling-house (or the land which comprises the dwelling-house).

F2 (3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(4) The assumptions as to title are—

(a) where the dwelling-house is in England and Wales or Northern Ireland and is a house, that the vendor was selling for an estate in fee simple with vacant possession and that the dwelling-house was to be conveyed with the same rights and subject to the same burdens as it would be if conveyed in pursuance of the right to buy legislation;

(b) where the dwelling-house is in England and Wales or Northern Ireland and is a flat, that the vendor was granting a lease with vacant possession for a term of 125 years at a rent of £10 per annum and that the grant was to be made with the same rights and subject to the same burdens as it would be if made in pursuance of that legislation; and

(c) where the dwelling-house is in Scotland, that it was available with vacant possession and with no heritable security constituted over any interest in it.

(5) In sub-paragraph (4) above “the right to buy legislation” means—

(a) in relation to a dwelling-house in England and Wales, Part V of the M1 Housing Act 1985;

(b) in relation to a dwelling-house in Northern Ireland, Chapter I of Part II of the M2 Housing (Northern Ireland) Order 1983;

and “flat” and “house” have the same meanings as in that legislation.

(6) The Treasury may by order amend sub-paragraph (1) above by substituting a different amount for any amount for the time being specified there.

Textual Amendments

F1 Sch. 4 para. 13(2)(a) substituted(for valuation on or after 20.03.1990) by Finance Act 1990 (c. 29, SIF 63:1), s. 73(1)(a), and (2).

F2 Sch. 4 para. 13(3) repealed(for valuation on or after 20.03.1990) by Finance Act 1990 (c. 29, SIF 63:1), ss. 73(1)(b), (2), 132, Sch. 19 Pt. IV, Note 13.

Marginal Citations

M1 1985 c. 68.

M2 S.I. 1983/1118 (N.I. 15).