Statutory Instruments
INCOME TAX
Made
14th October 1996
Laid before the House of Commons
14th October 1996
Coming into force
4th November 1996
The Treasury, in exercise of the powers conferred on them by section 378(1) and (2) of the Income and Corporation Taxes Act 1988(1), hereby make the following Regulations:
1.—(1) These Regulations may be cited as the Income Tax (Interest Relief) (Housing Associations) (Amendment) Regulations 1996 and shall come into force on 4th November 1996.
(2) These Regulations shall have effect with respect to any payment of interest made on or after 4th November 1996.
2. In these Regulations “the principal Regulations” means the Income Tax (Interest Relief) (Housing Associations) Regulations 1988(2) and “regulation” means a regulation of those Regulations.
3. In regulation 4(3), in the substituted subsection (1) of section 369 of the Income and Corporation Taxes Act 1988, for the words following “thereof;” there shall be substituted the words —
“and accordingly —
(a)subsections (2) and (3) of section 486 (interest paid by registered industrial and provident societies) shall not apply to the payment of that relevant loan interest, and
(b)that relevant loan interest shall not be brought into account by way of any debit given for the purposes of Chapter II of Part IV of the Finance Act 1996(4) (loan relationships).”
Michael Bates Roger Knapman
Two of the Lords Commissioners of Her Majesty’s Treasury
14th October 1996
(This note is not part of the Regulations)
These Regulations amend the Income Tax (Interest Relief) (Housing Associations) Regulations 1988 (S.I. 1988/1347, amended by S.I. 1995/1212) (“the principal Regulations”).
The principal Regulations make modifications to certain provisions of the Income and Corporation Taxes Act 1988 (“the Taxes Act”) relating to mortgage interest relief at source (“MIRAS”) in connection with payments of interest by housing associations and self-build societies on home loans.
These Regulations make an amendment to regulation 4 of the principal Regulations (“regulation 4”) which modifies section 369(1) of the Taxes Act. The amendment results from the introduction of the legislation relating to loan relationships in Chapter II of Part IV of the Finance Act 1996 and from changes made by the Finance Act 1996 to sections 337(3) and 338 of the Taxes Act which have, accordingly, ceased to be relevant for the purposes of regulation 4.