6. After Regulation 7 of the Principal Regulations there shall be inserted the following words—
7A. Interest which is paid and payable in the United Kingdom by persons as personal representatives of a deceased person or as trustees of a settlement made by his will the whole of which would have been eligible for relief under section 75 of the Finance Act 1972 (by virtue of paragraph 8 of Schedule 1 to the Finance Act 1974), apart from section 26(1) and paragraph 5 of Schedule 1 to the Finance Act 1974, is relevant loan interest within the meaning of Part I of Schedule 7 (but as if sub-paragraph (3) of paragraph 2 of that Schedule were omitted) to which section 26(1) applies.
7B. In determining whether loan interest paid and payable by trustees to whom reference is made in section 24(4) of the Housing Subsidies Act 1967(1) (option mortgages) or Article 143(6) of the Housing (Northern Ireland) Order 1981(2) (option mortgages in Northern Ireland) is relevant loan interest, Schedule 7 shall have effect as if for sub-paragraph (3) of paragraph 2 there were substituted the words—
‘(‘(3) This sub-paragraph applies to interest payable by trustees which becomes due on or after 1st April 1983 and is payable on a loan—
(a)in respect of which there is in force on 31st March 1983 an option notice given under section 24(2) of the 1967 Act (option mortgages) or under Article 142(2) of the 1981 Order which has effect by virtue of section 24(4) of that Act or, as the case may be, by virtue of Article 143(6) of that Order; and
(b)which relates to a dwelling in respect of which, at the time the interest is paid and on the assumption that one of those provisions continues to be applicable, the conditions in section 24(4) of the 1967 Act or, as the case may be, Article 143(6) of the 1981 Order are fulfilled.’’’
1967 c.29.
S.I. 1981/155.