Subsections (2) and (3) apply if a housing association makes a claim under this section for an accounting period or part of an accounting period during which the association was approved for the purposes of this Chapter.

Rent to which the association was entitled from its members for the accounting period or part of an accounting period is ignored for tax purposes.

The association is treated for corporation tax purposes as if any interest payable by it for the accounting period or part of an accounting period were not payable.

But subsection (3) does not apply so far as the interest is attributable to property that is not subject to a tenancy.