1.—(1) Section 44 (contract and conveyance) is amended as follows.
(2) In subsection (5)(a) (meaning of “substantial performance”: purchaser taking possession), after “the purchaser” insert “, or a person connected with the purchaser,”.
(3) In subsection (6) (meaning of taking possession)—
(a)for paragraph (a) substitute—
“(a)possession includes receipt of rents and profits or the right to receive them, and”; and
(b)in paragraph (b), for “the purchaser takes possession” substitute “possession is taken”.
(4) After subsection (10) add—
“(11) Section 839 of the Taxes Act 1988 (connected persons)(1) has effect for the purposes of this section.”.
The reference is to section 839 of the Income and the Corporation Taxes 1988 (c. 1) which was amended by paragraph 20 of Schedule 17 to the Finance Act 1995 (c. 4).