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Finance Act 2010

Amendment of section 244 (relief for interest paid on certain home loans) of Principal Act.

7.— As respects the year of assessment 2010 and subsequent years of assessment, section 244 of the Principal Act is amended—

(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”,

(b) by substituting the following for paragraph (b) of subsection (1A):

“(b) Notwithstanding paragraph (a), this section shall continue to apply—

(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

(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.”,

and

(c) by substituting the following for subsection (2)(a):

“(2) (a) In this subsection ‘appropriate percentage’, in relation to a year of assessment, means—

(i) as respects qualifying interest to which subsection (1A)(b)(i) applies—

(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

(II) where relievable interest is determined by reference to paragraph (iii) or (iv) of the definition of ‘relievable interest ’:

(A) 25 per cent for the first and second years of assessment for which there is an entitlement to relief under this section,

(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

(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,

and

(ii) as respects qualifying interest to which subsection (1A)(b)(ii) applies—

(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

(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.”.