Explanatory note
(This note is not part of the Regulations)
These Regulations revoke and replace the Income Tax (Interest Relief) (Housing Associations) Regulations 1983, as amended.
Apart from minor and drafting amendments, including amendments consequential on the consolidation of the Income Tax Acts by the Income and Corporation Taxes Act 1988, the principal changes of substance made are that—
in consequence of amendments made to the Income and Corporation Taxes Act 1988 by section 42 of the Finance Act 1988 (c. 39) (home loans: restriction of relief), provision is made so that in ascertaining whether a loan or loans to a housing association exceeds “the aggregate limit” regard is to be had to the number of persons by whom qualifying interest is payable (regulation 6); and
in consequence of subsection (6) of section 44 of the Finance Act 1988 (loans for residence of dependent relative etc.) provision is made so that in determining whether interest is “relevant loan interest” regard is to be had to that subsection (regulation 5).