Finance Act, 1983

• Permanent Page URL

Market value exemption limit.

100.—(1) In this section—

“general exemption limit” means the general market value exemption limit applying on a valuation date, that is to say, the amount obtained by multiplying £65,000 by the new house price index number relevant to that valuation date and dividing the product by the new house price index number relevant to the valuation date falling on the 5th day of April, 1983;

“market value exemption limit”, in relation to an assessable person as respects a valuation date, means the amount of the aggregate of the unit exemption limits attributed to the units of residential property comprised in the relevant residential property of the assessable person on that valuation date;

“the new house price index number” means the Trends in Private New House Prices Index Number compiled by the Department of the Environment and the new house price index number relevant to any valuation date means the new house price index number for the three months ended on the 31st day of March next before that valuation date expressed on the basis that the new house price index number for the three months ended on the 31st day of March, 1973, is 100.

“unit exemption limit”, in relation to a valuation date, means the proportion of the general exemption limit in relation to that valuation date which is attributed to a unit of residential property, and shall be the amount determined by the formula—

where—

A is the market value (ascertained without regard to section 99 ) on the valuation date of the unit of residential property,

B is the aggregate of the market values (ascertained without regard to section 99 ) on the valuation date of all the units comprised in the relevant residential property of the assessable person,

G is the general exemption limit:

Provided that, in relation to a valuation date, where a unit of residential property is comprised in the relevant residential property of two or more persons, the unit exemption limit in relation to that unit of residential property in the case of the assessable person shall be reduced to the amount which bears to the unit exemption limit calculated without regard to this proviso the same proportion as one bears to the number of those persons.

(2) The amount of the market value exemption limit applying on a valuation date in the case of any person shall not exceed the general exemption limit applying on that date.