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 The Housing Corporation Scottish Homes The Northern Ireland Housing Executive A registered social landlord A housing action trust established under Part 3 of the Housing Act 1988 (c. 50)

New towns and development corporations The Commission for the New Towns 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) The Welsh Development Agency

Police A police authority within the meaning of section 101(1) of the Police Act 1996 (c. 16) A police authority within the meaning of section 2(1) or 19(9)(b) of the Police (Scotland) Act 1967 (c. 77) 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.

(5) A grant under section 20 or 21 of the Housing Act 1996 (c. 52) (purchase grants in respect of disposals at a discount by registered social landlords) does not count as part of the chargeable consideration for a right to buy transaction in relation to which the vendor is a registered social landlord.