Finance Act 2003

Right to buy transactions U.K.

1 (1) In the case of a right to buy transaction— U.K.

(a) section 51(1) (contingent consideration to be included in chargeable consideration on assumption that contingency will occur) does not apply, and

(b) any consideration that would be payable only if a contingency were to occur, or that is payable only because a contingency has occurred, does not count as chargeable consideration.

(2) A “right to buy transaction” means—

(a) the sale of a dwelling at a discount, or the grant of a lease of a dwelling at a discount, by a relevant public sector body, or

(b) the sale of a dwelling, or the grant of a lease of a dwelling, in pursuance of the preserved right to buy.

(3) The following are relevant public sector bodies for the purposes of sub-paragraph (2)(a):

• Government

• A Minister of the Crown

• The Scottish Ministers

• A Northern Ireland department

• Local Government

• A local housing authority within the meaning of the Housing Act 1985 (c. 68)

• A county council in England

• A council constituted under section 2 of the Local Government etc. (Scotland) Act 1994 (c. 39), the common good of such a council or any trust under its control

• A district council within the meaning of the Local Government Act (Northern Ireland) 1972 (c. 9 (N.I.))

• Social housing

• [F1 The Regulator of Social Housing]

• Scottish Homes

• The Northern Ireland Housing Executive

• [F2 A non-profit registered provider of social housing]

• A registered social landlord

• A housing action trust established under Part 3 of the Housing Act 1988 (c. 50)

• New towns and development corporations [F3 etc.]

• The [F4 Homes and Communities Agency]

• [F5 The Greater London Authority so far as exercising its housing or regeneration functions or its new towns and urban development functions]

• A development corporation established by an order made, or having effect as if made, under the New Towns Act 1981 (c. 64)

• A development corporation established by an order made, or having effect as if made, under the New Towns (Scotland) Act 1968 (c. 16)

• A new town commission established under section 7 of the New Towns Act (Northern Ireland) 1965 (c. 13 (N.I.))

• An urban development corporation established by an order made under section 135 of the Local Government, Planning and Land Act 1980 (c. 65)

• F6 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

• Police

• A [F7 local policing body] within the meaning of section 101(1) of the Police Act 1996 (c. 16)

• [F8 The Scottish Police Authority]

• The Northern Ireland Policing Board

• Miscellaneous

• An Education and Libraries Board within the meaning of the Education and Libraries (Northern Ireland) Order 1986 (S.I. 1986/594 (N.I. 3))

• The United Kingdom Atomic Energy Authority

• Any person mentioned in paragraphs (g), (k), (l) or (n) of section 61(11) of the Housing (Scotland) Act 1987 (c. 26)

• A body prescribed for the purposes of this sub-paragraph by Treasury order.

(4) For the purposes of sub-paragraph (2)(b) the transfer of a dwelling, or the grant of a lease of a dwelling, is made in pursuance of the preserved right to buy if—

(a) the vendor is—

(i) in England and Wales, a person against whom the right to buy under Part 5 of the Housing Act 1985 (c. 68) is exercisable by virtue of section 171A of that Act, or

(ii) in Scotland, a person against whom the right to buy under section 61 of the Housing (Scotland) Act 1987 is exercisable by virtue of section 81A of that Act,

(which provide for the preservation of the right to buy on disposal to a private sector landlord),

(b) the purchaser is the qualifying person for the purposes of the preserved right to buy, and

(c) the dwelling is the qualifying dwelling-house in relation to the purchaser.

F9 (5) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

[F10 (6) A grant under section 19 of the Housing and Regeneration Act 2008 which—

(a) is made by virtue of section 35 of that Act, or

(b) is otherwise made to a relevant provider of social housing (within the meaning of section 35 of that Act) in respect of discounts given by the provider on disposals of dwellings to tenants,

does not count as part of the chargeable consideration for a right to buy transaction to which the vendor is a relevant provider of social housing.]

[F11 (7) A grant by the Greater London Authority which—

(a) is made by virtue of section 35 of the Housing and Regeneration Act 2008 as applied by section 333ZE of the Greater London Authority Act 1999, or

(b) is otherwise made to a relevant provider of social housing (within the meaning of section 35 of the Housing and Regeneration Act 2008) in respect of discounts given by the provider on disposals of dwellings to tenants,

does not count as part of the chargeable consideration for a right to buy transaction to which the vendor is a relevant provider of social housing.]

Textual Amendments

F1 Words in Sch. 9 para. 1(3) substituted (1.4.2010) by Housing and Regeneration Act 2008 (c. 17), s. 325(1), Sch. 9 para. 32(2)(a); S.I. 2010/862, art. 2 (with Sch.)

F2 Words in Sch. 9 para. 1(3) inserted (1.4.2010) by Housing and Regeneration Act 2008 (c. 17), s. 325(1), Sch. 9 para. 32(2)(b); S.I. 2010/862, art. 2 (with Sch.)

F3 Word in Sch. 9 para. 1(3) inserted (1.12.2008) by Housing and Regeneration Act 2008 (c. 17), s. 325(1), Sch. 8 para. 80(2)(a); S.I. 2008/3068, art. 2(1)(w)(3) (with arts. 6-13)

F4 Words in Sch. 9 para. 1(3) substituted (1.12.2008) by Housing and Regeneration Act 2008 (c. 17), s. 325(1), Sch. 8 para. 80(2)(b); S.I. 2008/3068, art. 2(1)(w)(3) (with arts. 6-13)

F5 Words in Sch. 9 para. 1(3) inserted (1.4.2012) by Localism Act 2011 (c. 20), s. 240(2), Sch. 19 para. 41(2)(a); S.I. 2012/628, art. 6(i) (with arts. 9, 11, 14, 15, 17)

F6 Words in Sch. 9 para. 1(3) omitted (1.4.2006) by virtue of The Welsh Development Agency (Transfer of Functions to the National Assembly for Wales and Abolition) Order 2005 (S.I. 2005/3226), arts. 1(2), 7, Sch. 2 para. 14 (with art. 3(1))

F7 Words in Sch. 9 substituted (16.1.2012) by Police Reform and Social Responsibility Act 2011 (c. 13), s. 157(1), Sch. 16 para. 314; S.I. 2011/3019, art. 3, Sch. 1

F8 Words in Sch. 9 para. 1(3) substituted (1.4.2013) by The Police and Fire Reform (Scotland) Act 2012 (Consequential Provisions and Modifications) Order 2013 (S.I. 2013/602), art. 1(2), Sch. 2 para. 40

F9 Sch. 9 para. 1(5) omitted (E.W.) (26.1.2019) by virtue of Abolition of the Right to Buy and Associated Rights (Wales) Act 2018 (anaw 1), s. 11(3)(4), Sch. 1 para. 4(2); S.I. 2018/100, art. 2(b) (with art. 3) (with savings in S.I. 2019/110, reg. 5)

F10 Sch. 9 para. 1(6) inserted (1.4.2010) by Housing and Regeneration Act 2008 (c. 17), s. 325(1), Sch. 9 para. 32(4); S.I. 2010/862, art. 2 (with Sch.)

F11 Sch. 9 para. 1(7) inserted (1.4.2012) by Localism Act 2011 (c. 20), s. 240(2), Sch. 19 para. 41(2)(b); S.I. 2012/628, art. 6(i) (with arts. 9, 11, 14, 15, 17)

Modifications etc. (not altering text)

C1 Sch. 9 para. 1(3) modified (1.12.2008) by The Transfer of Housing Corporation Functions (Modifications and Transitional Provisions) Order 2008 (S.I. 2008/2839), arts. 1(1), 3, Sch. para. 1 (with art. 6) (see S.I. 2008/3068, art. 2(1)(b))