Paragraph 16 I1

that the loan was made as part of a scheme under which not less than 90% of the proceeds of the loan were applied to the purchase by the person to whom it was made of an annuity ending with his life or with the life of the survivor of two or more persons (in this paragraph referred to as “the annuitants”) who include the person to whom the loan was made;

that the interest on the loan is payable by the person to whom it was made or by one of the annuitants;

that at the time the loan was made the person to whom it was made or each of the annuitants had attained the age of 65;

that the loan was secured on a dwelling in Great Britain and the person to whom the loan was made or one of the annuitants owns an estate or interest in that dwelling; and

that the person to whom the loan was made or one of the annuitants occupies the dwelling on which it was secured as his home at the time the interest is paid,

where, or insofar as, section 369 of the Income and Corporation Taxes Act 1988^f1 (mortgage interest payable under deduction of tax) applies to the payments of interest on loan, the interest which is payable after deduction of a sum equal to income tax on such payments at the basic rate for the year of assessment in which the payment of interest becomes due,

in any other case the interest which is payable on the loan without deduction of such a sum.