Meaning of relevant disposal and exempt disposal for the purposes of Articles 58 to 61
62.—(1) A disposal, whether of the whole or part of the dwelling, is a relevant disposal for the purposes of Articles 58 to 61 if it is—
(a)a conveyance of a freehold estate or an assignment of the lease, or
(b)the grant of a lease (other than a mortgage term) for a term of more than 21 years otherwise than at a rack rent.
(2) For the purposes of paragraph (1)(b) it shall be assumed—
(a)that any option to renew or extend a lease or sub-lease, whether or not forming part of a series of options, is exercised, and
(b)that any option to terminate a lease or sub-lease is not exercised.
(3) A disposal is an exempt disposal for the purposes of Articles 58 to 61 if it is—
(a)a disposal of the whole of the dwelling and a conveyance of a freehold estate or an assignment of the lease and the person or each of the persons to whom it is made is a qualifying person as defined in paragraph (4);
(b)a vesting of the whole of the dwelling in a person taking under a will or on an intestacy;
(c)a disposal of the whole of the dwelling in pursuance of an order (not being an order for sale) made under Article 26(1) of the Matrimonial Causes (Northern Ireland) Order 1978(1) (property adjustment orders in connection with matrimonial proceedings) or Article 4 of the Inheritance (Provision for Family and Dependants) (Northern Ireland) Order 1979(2) (orders as to financial provision to be made from estate);
(d)a compulsory disposal, that is to say, a disposal to a person who has made or who would have made, or for whom another person has made or would have made, a vesting order authorising its acquisition compulsorily for the purposes for which it is acquired;
(e)a disposal of property consisting of land included in the dwelling and used for the purposes of the dwelling; or
(f)a disposal under which the interest of a person entitled to assistance by way of repurchase under Part II of the Order of 1986 (assistance for owners of defective housing) is acquired in accordance with Schedule 2 to that Order.
(4) A person is a qualifying person for the purposes of paragraph (3)(a) if—
(a)in the case of an individual, he is—
(i)the person, or one of the persons, by whom the disposal is made;
(ii)the spouse, or former spouse, of that person or one of those persons; or
(iii)a member of the family of that person or one of those persons; or
(b)in the case of a company, it is an associated company of the company by whom the disposal is made;
and, for the purposes of sub-paragraph (b), section 416 of the Income and Corporation Taxes Act 1988(3) (meaning of associated company) shall apply in determining whether a company is an associated company of another.
(5) For the purposes of Articles 58 to 61, the grant of an option enabling a person to call for a relevant disposal which is not an exempt disposal shall be treated as such a disposal made to him.