Finance Act, 1974

Relief on certain bridging loans.

32.—(1) Where a person—

(a) disposes of his only or main residence and acquires another residence for use as his only or main residence,

(b) obtains a loan the proceeds of which are used to defray, in whole or in part, the cost of the acquisition or the disposal or both, and

(c) pays interest on the loan (and on any subsequent loan the proceeds of which are used to repay, in whole or in part, the first-mentioned loan or any such subsequent loan or to pay interest on any such loan) in respect of the period of twelve months from the date of the making of the first-mentioned loan, he shall be entitled, on proof of the facts, to repayment of tax under section 496 of the Income Tax Act, 1967 , as amended by section 29, on the amount of that interest as if no other interest had been paid by him in respect of the aforementioned period of twelve months.

(2) Subsection (1) shall not apply to a loan the proceeds of which are applied for some other purpose before being applied for the purpose specified in that subsection.