Finance (No.2) Act 2023

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Amendment of section 477C of Principal Act (Help to Buy)

6. (1) Section 477C of the Principal Act is amended—

(a) in subsection (1), by—

(i) the insertion of the following definition:

“ ‘affordable dwelling contribution’ shall be construed in accordance with section 12(2) of the Act of 2021;”,

(ii) the substitution of the following definition for the definition of “loan-to-value ratio”:

“ ‘loan-to-value ratio’ means—

(a) in the case of a contract referred to in subsection (3)(a) that was entered into before 11 October 2023, the amount of the qualifying loan as a proportion of the purchase value of the qualifying residence, and

(b) in all other cases, the amount that is the aggregate of—

(i) the amount of the qualifying loan, and

(ii) in the case of a qualifying residence, the amount of the affordable dwelling contribution, if any, in respect of the qualifying residence,

as a proportion of the purchase value of the qualifying residence or the self-build qualifying residence, as the case may be;”,

and

(iii) in the definition of “qualifying period”, the substitution of “2025” for “2024”,

(b) in subsection (5A), by the substitution of “2025” for “2024”,

(c) in subsection (8)(b), by the substitution of “2025” for “2024”,

(d) in subsection (12)(a), by the insertion of the following subparagraphs after subparagraph (viii):

“(viiia) the amount of the affordable dwelling contribution, if any, in respect of the qualifying residence,

(viiib) evidence of the affordable dwelling purchase arrangement (within the meaning of section 12 of the Act of 2021), if any, entered into, in respect of the qualifying residence,”,

(e) in subsection (16)(a), in subparagraphs (ii) and (iii), by the substitution of “2025” for “2024” in each place where it occurs, and

(f) in subsection (25), by the substitution of “2025” for “2024”.

(2) Paragraphs (a) (i) and (ii) and (d) of subsection (1) shall have effect on and from 11 October 2023.