Finance Act 2003
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Rental income: restriction of relief for certain interest. |
16.—(1) The Principal Act is amended— | |
(a) in section 97— | ||
(i) in subsection (2G), by substituting “in the purchase, other than from the spouse of the person chargeable” for “in the purchase”, and | ||
(ii) by inserting the following after subsection (2G): | ||
“(2H) The reference to ‘spouse’ in subsection (2G) does not include a spouse to a marriage— | ||
(a) in which the spouses are separated under an order of a court of competent jurisdiction or by deed of separation, or | ||
(b) that has been dissolved under either— | ||
(i) section 5 of the Family Law (Divorce) Act 1996 , or | ||
(ii) the law of a country or jurisdiction other than the State, being a divorce that is entitled to be recognised as valid in the State.”, and | ||
(b) in section 248A, by inserting the following after subsection (3): | ||
“(4) Notwithstanding subsection (3), subsection (2) shall apply in relation to interest referred to in subsection (2) where the purpose of the loan is the purchase of a residential premises from the spouse of the individual to whom relief is given under section 248 or 253. | ||
(5) The reference to ‘spouse’ in subsection (4) does not include a spouse to a marriage— | ||
(a) in which the spouses are separated under an order of a court of competent jurisdiction or by deed of separation, or | ||
(b) that has been dissolved under either— | ||
(i) section 5 of the Family Law (Divorce) Act 1996 , or | ||
(ii) the law of a country or jurisdiction other than the State, being a divorce that is entitled to be recognised as valid in the State.”. | ||
(2) This section shall apply and have effect in relation to interest referred to in sections 97(2G) and 248A(2) which accrues on or after 6 February 2003 and, for the purposes of this subsection, such interest shall be treated as accruing from day to day. |