Modifications etc. (not altering text)
C1 S. 45H(2) modified (with effect in accordance with s. 167 of the amending Act) by Finance Act 2003 (c. 14) , Sch. 30 para. 7
(1)This section applies if—
(a)expenditure has been incurred by a developer on the construction of a building which was to be or include a qualifying dwelling-house, and
(b)the relevant interest was sold by the developer in the course of the development trade before the first use of any dwelling-house comprised in the building.
(2)If—
(a)the sale of the relevant interest by the developer was the only sale of that interest before the first use of any dwelling-house comprised in the building, and
(b)a capital sum was paid by the purchaser for the relevant interest,
the capital sum is qualifying expenditure.
(3)If—
(a)the sale by the developer was not the only sale before the first use of any dwelling-house comprised in the building, and
(b)a capital sum was paid by the purchaser for the relevant interest on the last sale,
the lesser of that capital sum and the price paid for the relevant interest on its sale by the developer is qualifying expenditure.
(4)The qualifying expenditure is treated as having been incurred when the capital sum referred to in subsection (2)(b) or (3)(b) became payable.
(5)For the purposes of this section—
(a)a developer is a person who carries on a trade which consists in whole or in part in the construction of buildings with a view to their sale, and
(b)an interest in a building is sold by the developer in the course of the development trade if the developer sells it in the course of the trade or (as the case may be) that part of the trade that consists in the construction of buildings with a view to their sale.