Part 10

Assured tenancy allowances
Chapter 3

Qualifying expenditure

Purchase of unused dwelling-house where developer not involved
502
1
This section applies if—
a
expenditure has been incurred on the construction of a building which was to be or include a qualifying dwelling-house,
b
the relevant interest was sold before the first use of any dwelling-house comprised in the building,
c
a capital sum was paid by the purchaser for the relevant interest, and
d
section 503 (purchase of dwelling-house sold unused by developer) does not apply.
2
The lesser of—
a
the capital sum paid by the purchaser for the relevant interest, and
b
the expenditure incurred on the construction of the building,
is qualifying expenditure.
3
The qualifying expenditure is to be treated as having been incurred when the capital sum became payable.
4
If the relevant interest was sold more than once before the first use of any dwelling-house comprised in the building, subsection (2) has effect only in relation to the last of those sales.
S. 45H(2) modified (with effect in accordance with s. 167 of the amending Act) by Finance Act 2003 (c. 14) , Sch. 30 para. 7