Finance Act 2003

[F1 Shared ownership trust: introduction U.K.

Textual Amendments

F1 Sch. 9 paras. 7-11 and cross-headings inserted (with effect in accordance with s. 77(2) of the amending Act) by Finance Act 2007 (c. 11), s. 77(1)

7 (1) In this Schedule “shared ownership trust” means a trust of land, within the meaning of section 1 of the Trusts of Land and Appointment of Trustees Act 1996, which satisfies the following conditions. U.K.

(2) Condition 1 is that the trust property is—

(a) a dwelling, and

(b) in England F2 ...

(3) Condition 2 is that one of the beneficiaries (“the social landlord”) is a qualifying body F3 ....

(4) Condition 3 is that the terms of the trust—

(a) provide for one or more of the individual beneficiaries (“the purchaser”) to have exclusive use of the trust property as the only or main residence of the purchaser,

(b) require the purchaser to make an initial payment to the social landlord (“the initial capital”),

(c) require the purchaser to make additional payments to the social landlord by way of compensation under section 13(6)(a) of the Trusts of Land and Appointment of Trustees Act 1996 (“rent-equivalent payments”),

(d) enable the purchaser to make other additional payments to the social landlord (“equity-acquisition payments”),

(e) determine the initial beneficial interests of the social landlord and of the purchaser by reference to the initial capital,

(f) specify a sum, equating or relating to the market value of the dwelling, by reference to which the initial capital was calculated, and

(g) provide for the purchaser's beneficial interest in the trust property to increase, and the social landlord's to diminish (or to be extinguished), as equity-acquisition payments are made.

(5) Section 118 (meaning of “market value”) does not apply to this paragraph.

(6) In Condition 1 “dwelling” includes—

(a) a building which is being constructed or adapted for use as a dwelling,

(b) land which is to be used for the purpose of the construction of a dwelling, and

(c) land which is, or is to become, the garden or grounds of a dwelling.

[F4 (7) In Condition 2 “qualifying body” means—

(a) a qualifying body within the meaning of paragraph 5(2)(a) to (f), or

(b) a [F5 private registered provider] of social housing within paragraph 5(2)(g) (subject to sub-paragraph (8)).

(8) A [F6 private registered provider] of social housing within paragraph 5(2)(g) (“R”) is only a qualifying body in relation to a shared ownership trust if the following has been or is being funded with the assistance of a grant or other financial assistance [F7 made or given] under section 19 of the Housing and Regeneration Act 2008 [F8 or by the Greater London Authority] —

(a) the purchase or construction of the trust property by R (or a person connected with R), or

(b) the adaptation of the trust property by R (or a person connected with R) for use as a dwelling.

(9) [F9 Section 1122 of the Corporation Tax Act 2010] (connected persons) has effect for the purposes of sub-paragraph (8).]]

Textual Amendments

F2 Words in Sch. 9 para. 7(2)(b) omitted (1.4.2018 with effect in accordance with s. 16(4)(5) of the amending Act) by virtue of Wales Act 2014 (c. 29), s. 29(2)(b)(3), Sch. 2 para. 11; S.I. 2018/214, art. 2(a)

F3 Words in Sch. 9 para. 7(3) omitted (with effect in accordance with s. 81(8) of the amending Act) by virtue of Finance Act 2009 (c. 10), s. 81(7)(a)

F4 Sch. 9 para. 7(7)-(9) inserted (with effect in accordance with s. 81(8) of the amending Act) by Finance Act 2009 (c. 10), s. 81(7)(b)

F5 Words in Sch. 9 para. 7(7) substituted (1.4.2010) by The Housing and Regeneration Act 2008 (Registration of Local Authorities) Order 2010 (S.I. 2010/844), art. 1(2), Sch. 2 para. 25(c)

F6 Words in Sch. 9 para. 7(8) substituted (1.4.2010) by The Housing and Regeneration Act 2008 (Registration of Local Authorities) Order 2010 (S.I. 2010/844), art. 1(2), Sch. 2 para. 25(c)

F7 Words in Sch. 9 para. 7(8) inserted (1.4.2012) by Localism Act 2011 (c. 20), s. 240(2), Sch. 19 para. 41(4)(a); S.I. 2012/628, art. 6(i) (with arts. 9, 11, 14, 15, 17)

F8 Words in Sch. 9 para. 7(8) inserted (1.4.2012) by Localism Act 2011 (c. 20), s. 240(2), Sch. 19 para. 41(4)(b); S.I. 2012/628, art. 6(i) (with arts. 9, 11, 14, 15, 17)

F9 Words in Sch. 9 para. 7(9) substituted (with effect in accordance with s. 1184(1) of the amending Act) by Corporation Tax Act 2010 (c. 4), Sch. 1 para. 417(3) (with Sch. 2)