Finance Act 2014

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Amendment of Chapter 4 of Part 8 of Principal Act (interest payments by certain deposit takers)

22.

(1) Chapter 4 of Part 8 of the Principal Act is amended by inserting the following section after section 266:

“Repayments of appropriate tax to first-time purchasers

266A. (1) In this section—

‘completion value’, in relation to a dwelling, means the price which the unencumbered fee simple of the dwelling might reasonably be expected to fetch on a sale in the open market were that dwelling to be sold on the relevant completion date in such manner and subject to such conditions as might reasonably be calculated to obtain for the vendor the best price for the dwelling and with the benefit of any easement necessary to afford the same access to the dwelling as would have existed prior to that sale;

‘first-time purchaser’ means a person, being an individual who, at the time of a relevant purchase or on the relevant completion date, as the case may be, has not, either individually or jointly with any other person or persons, previously purchased or previously built directly or indirectly on his or her own behalf any other dwelling;

‘relevant completion’ means the completion of the construction of a new dwelling, on or after 14 October 2014 and on or before 31 December 2017, to a standard where it is suitable for immediate occupation as a dwelling and the dwelling—

(a) has been built directly or indirectly—

(i) on his or her own behalf by a first-time purchaser only, for occupation as his or her place of residence, or

(ii) on their own behalf by more than one person, where each such person is a first-time purchaser only, for occupation as their place of residence,

and

(b) is constructed on property conveyed or transferred, on or before 31 December 2017, into the name or names of the first-time purchaser or first-time purchasers only, as the case may be;

‘relevant completion date’, in relation to a relevant completion, means the date on which the dwelling becomes suitable for immediate occupation as a dwelling;

‘relevant purchase’ means the conveyance or transfer of a dwelling on or after 14 October 2014 and on or before 31 December 2017—

(a) into the name of a first-time purchaser only, for occupation as his or her place of residence, or

(b) into the names of more than one person, where each such person is a first-time purchaser only, for occupation as their place of residence;

‘relevant savings’ means—

(a) in the case of a relevant purchase, so much of the aggregate amount at any time of any relevant deposits held in the name of a first-time purchaser, individually or jointly with another first-time purchaser only, as does not exceed 20 per cent of the amount of the consideration paid in respect of the relevant purchase by the first-time purchaser, or

(b) in the case of a relevant completion, so much of the aggregate amount at any time of any relevant deposits held in the name of a first-time purchaser, individually or jointly with another first-time purchaser only, as does not exceed 20 per cent of the completion value of the dwelling;

‘relevant savings interest’ means relevant interest paid—

(a) in the case of a relevant purchase, at any time during the period of 48 months ending on the date of the relevant purchase by a first-time purchaser, to the first-time purchaser in respect of relevant savings, or

(b) in the case of a relevant completion, at any time during the period of 48 months ending on the relevant completion date, to the first-time purchaser in respect of relevant savings.

(2) Notwithstanding section 261(b), appropriate tax which—

(a) has been deducted from relevant savings interest paid to a first-time purchaser, and

(b) would not otherwise fall to be repaid under this section or any other provision of the Tax Acts,

shall be repaid to the first-time purchaser on the making of a claim by that first-time purchaser to the inspector in that behalf.”.

(2) This section has effect on and from 14 October 2014.