Local Government and Housing Act 1989

124 Meaning of relevant disposal and exempt disposal for the purposes ofsections 120 to 123. E+W

(1) A disposal, whether of the whole or part of the dwelling, is a relevantdisposal for the purposes of sections 120 to 123 above if it is—

(a) a conveyance of the freehold or an assignment of the lease, or

(b) the grant of a lease (other than a mortgage term) for a term of more than21 years otherwise than at a rack rent.

(2) For the purposes of subsection (1)(b) above it shall be assumed—

(a) that any option to renew or extend a lease or sub-lease, whether or notforming part of a series of options, is exercised, and

(b) that any option to terminate a lease or sub-lease is not exercised.

(3) A disposal is an exempt disposal for the purposes of sections 120 to 123above if it is—

(a) a disposal of the whole of the dwelling and a conveyance of the freeholdor an assignment of the lease and the person or each of the persons to whomit is made is a qualifying person as defined in subsection (4) below;

(b) a vesting of the whole of the dwelling in a person taking under a will oron an intestacy;

[F1 (c) a disposal of the whole of the dwelling in pursuance of any such order as is mentioned in subsection (4A) below;]

(d) a compulsory disposal as defined in section 161 of the M1 Housing Act 1985 (meaning of compulsory disposal);

(e) a disposal of property consisting of land included in the dwelling byvirtue of section 184 of that Act (land let with or used for the purposes ofthe dwelling-house); or

(f) a disposal under which the interest of a person entitled to assistance byway of repurchase under Part XVI of that Act (assistance for owners ofdefective housing) is acquired in accordance with Schedule 20 to that Act.

(4) A person is a qualifying person for the purposes of subsection (3)(a)above if—

(a) in the case of an individual, he is—

(i) the person, or one of the persons, by whom the disposal is made;

(ii) the spouse, or former spouse, of that person or one of those persons; or

(iii) a member of the family of that person or one of those persons; or

(b) in the case of a company, it is an associated company of the company bywhom the disposal is made;

and, for the purposes of paragraph (b) above, section 416 of the M2 Income and Corporation Taxes Act 1988 (meaning of associatedcompany) shall apply in determining whether a company is an associated companyof another.

[F2 (4A) The orders referred to in subsection (3)(c) above are orders under—

(a) section 24 or 24A of the Matrimonial Causes Act 1973 (property adjustment orders or orders for the sale of property in connection with matrimonial proceedings),

(b) section 2 of the Inheritance (Provision for Family and Dependants) Act 1975 (orders as to financial provision to be made from estate),

(c) section 17 of the Matrimonial and Family Proceedings Act 1984 (property adjustment orders or orders for the sale of property after overseas divorce, &c.), or

(d) paragraph 1 of Schedule 1 to the Children Act 1989 (orders for financial relief against parents);]

(5) For the purposes of sections 120 to 123 above, the grant of an optionenabling a person to call for a relevant disposal which is not an exemptdisposal shall be treated as such a disposal made to him.

Textual Amendments

F1 S. 124(3)(c) substituted (24.9.1996) by 1996 c. 53, ss. 141(1)(2), 150(2)

F2 S. 124(4A) inserted (24.9.1996) by 1996 c. 53, ss. 141(1)(3), 150(2)

Marginal Citations

M1 1985 c.68.

M2 1988c. 1.