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Amendment of section 244 (relief for interest paid on certain home loans) of Principal Act.
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7.— As respects the year of assessment 2010 and subsequent years of assessment, section 244 of the Principal Act is amended—
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(a) in subsection (1)(a) by inserting “taken out on or after 1 January 2004 and on or before 31 December 2011” after “qualifying loan” in the definition of “relievable interest”,
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(b) by substituting the following for paragraph (b) of subsection (1A):
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“(b) Notwithstanding paragraph (a), this section shall continue to apply—
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(i) for the year of assessment 2010 and subsequent years of assessment up to and including the year of assessment 2017 in respect of qualifying interest paid in respect of a qualifying loan taken out on or after 1 January 2004 and on or before 31 December 2011, and
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(ii) for the year of assessment 2012 and subsequent years of assessment up to and including the year of assessment 2017 in respect of qualifying interest paid in respect of a qualifying loan taken out on or after 1 January 2012 and on or before 31 December 2012.”,
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and
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(c) by substituting the following for subsection (2)(a):
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“(2) (a) In this subsection ‘appropriate percentage’, in relation to a year of assessment, means—
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(i) as respects qualifying interest to which subsection (1A)(b)(i) applies—
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(I) where relievable interest is determined by reference to paragraph (i) or (ii) of the definition of ‘relievable interest ’, 15 per cent for that year, and
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(II) where relievable interest is determined by reference to paragraph (iii) or (iv) of the definition of ‘relievable interest ’:
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(A) 25 per cent for the first and second years of assessment for which there is an entitlement to relief under this section,
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(B) 22.5 per cent for the third, fourth and fifth years of assessment for which there is an entitlement to relief under this section, and
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(C) a percentage equal to the standard rate of tax for the sixth and seventh years of assessment for which there is an entitlement to relief under this section,
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and
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(ii) as respects qualifying interest to which subsection (1A)(b)(ii) applies—
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(I) where relievable interest is determined by reference to paragraph (i) or (ii) of the definition of ‘relievable interest’, 10 per cent for that year, and
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(II) where relievable interest is determined by reference to the first 6 years of assessment or, where the period of entitlement to relief under this section is shorter, such shorter period, 15 per cent for that year.”.
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