[F17(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.
(2)Condition 1 is that the trust property is—
(a)a dwelling, and
(b)in England or Wales.
(3)Condition 2 is that one of the beneficiaries (“the social landlord”) is a qualifying body (within the meaning of paragraph 5(2)).
(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.]
Textual Amendments
F1Sch. 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)