[F1Exempt agreements: exemption relating to the purchase of land for non-residential purposesU.K.
60D.—(1) A credit agreement is an exempt agreement for the purposes of this Chapter if, at the time it is entered into, any sums due under it are secured by a legal mortgage on land and the condition in paragraph (2) is satisfied.
(2) The condition is that less than 40% of the land is used, or is intended to be used, as or in connection with a dwelling—
(a)by the borrower or a related person of the borrower, or
(b)in the case of credit provided to trustees, by an individual who is a beneficiary of the trust or a related person of a beneficiary.
(3) For the purposes of paragraph (2)—
(a)the area of any land which comprises a building or other structure containing two or more storeys is to be taken to be the aggregate of the floor areas of each of those stories;
(b)“related person” in relation to a person (“B”) who is the borrower or (in the case of credit provided to trustees) a beneficiary of the trust, means—
(i)B’s spouse or civil partner,
(ii)a person (whether or not of the opposite sex) whose relationship with B has the characteristics of the relationship between husband and wife, or
(iii)B’s parent, brother, sister, child, grandparent or grandchild.]
Textual Amendments
F1Pt. 2 Chs. 14A, 14B inserted (26.7.2013 for specified purposes) by The Financial Services and Markets Act 2000 (Regulated Activities) (Amendment) (No.2) Order 2013 (S.I. 2013/1881), arts. 1(2), 6