The Income Tax (Interest Relief) (Qualifying Lenders) (No. 2) Order 1993

Statutory Instruments

1993 No. 1821

INCOME TAX

The Income Tax (Interest Relief) (Qualifying Lenders) (No. 2) Order 1993

Made

20th July 1993

The Treasury, in exercise of the powers conferred on them by section 376(5) of the Income and Corporation Taxes Act 1988(1), hereby make the following Order:

1.  This Order may be cited as the Income Tax (Interest Relief) (Qualifying Lenders) (No.2) Order 1993.

2.  The bodies named in article 3 below are prescribed for the purposes of section 376 of the Income and Corporation Taxes Act 1988 and shall become qualifying lenders with effect from the dates and in respect of the loans specified in the following paragraphs—

(a) with effect from the thirtieth day after the making of this Order, in relation to new loans (that is loans which are made on or after that day);

(b) with effect from the making of this Order, in relation to transferred loans (that is loans transferred from another qualifying lender on or after the making of this Order the interest on which is at the time of transfer relevant loan interest payable by a qualifying borrower);

(c) with effect from the 6th April 1994, in relation to other loans made by the body concerned before the thirtieth day after the making of this Order.

3.  The following are the bodies referred to in article 2 above—

• Ardenhill Limited

• Ardenmarsh Limited

• Direct Line Financial Services Limited

• London and Manchester (Mortgages) (No. 7) Limited

• N & P Mortgages Limited

• N & P Mortgages Series A Limited

• N & P Mortgages Series B Limited

• Principality Mortgage Corporation Limited

• Société Générale

• Urbantype Projects Limited

• White Horse Mortgage Services Limited.

4.  Article 3 of the Income Tax (Interest Relief) (Qualifying Lenders) (No.2) Order 1986(2) shall be amended by omitting the words—

• “The Sumitomo Bank Limited”.

5.  Article 3 of the Income Tax (Interest Relief) (Qualifying Lenders) (No.3) Order 1986(3) shall be amended by omitting the words—

• “Trushelfco (No. 992) Limited

• Trushelfco (No. 993) Limited”.

Tim Wood

Tim Kirkhope

Two of the Lords Commissioners of Her Majesty’s Treasury

20th July 1993

Explanatory Note

(This note is not part of the Order)

A person who is a qualifying borrower, and who makes a payment of relevant loan interest to a qualifying lender, is entitled to pay that interest under deduction of tax under the mortgage interest relief at source scheme (MIRAS).

This Order prescribes the bodies named in article 3 as qualifying lenders from the dates specified in article 2.

This Order also amends previous Orders (in articles 4 and 5) by omitting the bodies named in those articles. These bodies therefore cease to be qualifying lenders.

Previous Orders that are in force are S.I.1983/1907, 1984/1945, 1985/1697, 1986/386, 1440 and 2191, 1987/1224 and 2127, 1988/781 and 1962, 1989/908 and 1932, 1990/1298, 1991/618 and 2604, 1992/1745 and 3219 and 1993/949.

(1)

1988 c. 1; section 376 was amended by paragraph 115 of Schedule 17 to the Housing Act 1988 (c. 50) and by paragraph 3 of Schedule 9 to the Finance (No.2) Act 1992 (c. 48).

(2)

S.I. 1986/1440.

(3)

S.I. 1986/2191.