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19 Relief For Interest (Home Improvements)

Volume 130: debated on Monday 21 March 1988

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Question put,

That—

(1) In relation to payments of interest made on or after 6th April 1988 section 355 of the Income and Corporation Taxes Act 1988 (limitations on relief for loans for purchase or improvement of land etc.) shall have effect with the insertion of the following subsections after subsection (2)—

"(2A) Section 354 shall not apply by virtue of subsection (1)(a) above where the interest is paid on a home improvement loan unless the loan was made before 6th April 1988.
(2B) In subsection (2A) above "home improvement loan" means—
  • (a) a loan to defray money applied in improving or developing land or buildings on land, otherwise than by the erection of a new building (which is not part of an existing residence) on land which immediately before the improvement or development began had no building on it, or
  • (b) a loan replacing (whether directly or indirectly) a loan within paragraph (a) above.
  • (2C) Where it is proved by written evidence that a loan made on or after 6th April 1988 was made in pursuance of an offer made by the lender before that date and that the offer either was in writing or was evidenced by a note or memorandum made by the lender before that date, the loan shall be deemed for the purposes of subsection (2A) above to have been made before that date."

    (2) In relation to payments of interest made on or after 6th April 1988 section 356 of that Act (job-related accommodation) shall have effect with the insertion of the following subsection after subsection (1)—

    "(1A) Subsection (1) above shall not apply where the interest is paid on a home improvement loan (as defined in section 355 (2B)) unless the loan was made before 6th April 1988; and section 355 (2C) shall have effect for the purposes of this subsection as for those of section 355 (2A)."

    (3) Interest paid by a housing association on a home improvement loan made on or after 6th April 1988 shall not be relevant loan interest for the purposes of Part IX of that Act; and for the purposes of this paragraph—

  • (a) "housing association" means a housing association for the time being approved for the purposes of section 488 of that Act or a self-build society for the time being approved for the purposes of section 489,
  • (b) "home improvement loan" has the same meaning as in subsection (2B) of section 355 of that Act, and
  • (c) subsection (2C) of that section shall have effect as it does for the purposes of subsection (2A) of that section.
  • And it is hereby declared that it is expedient in the public interest that this Resolution should have statutory effect under the provisions of the Provisional Collection of Taxes Act 1968.—[Mr. Lawson.]

    The House divided: Ayes 335, Noes 218.

    Division No. 220]

    [10.42 pm

    AYES

    Adley, RobertBaker, Rt Hon K. (Mole Valley)
    Aitken, JonathanBaker, Nicholas (Dorset N)
    Alexander, RichardBaldry, Tony
    Alison, Rt Hon MichaelBanks, Robert (Harrogate)
    Allason, RupertBatiste, Spencer
    Amess, DavidBeaumont-Dark, Anthony
    Amos, AlanBellingham, Henry
    Arbuthnot, JamesBendall, Vivian
    Arnold, Jacques (Gravesham)Bennett, Nicholas (Pembroke)
    Arnold, Tom (Hazel Grove)Benyon, W.
    Ashby, DavidBevan, David Gilroy
    Aspinwall, JackBiffen, Rt Hon John
    Atkins, RobertBiggs-Davison, Sir John

    Blackburn, Dr John G.Glyn, Dr Alan
    Blaker, Rt Hon Sir PeterGoodhart, Sir Philip
    Bonsor, Sir NicholasGoodlad, Alastair
    Bottomley, PeterGoodson-Wickes, Dr Charles
    Bottomley, Mrs VirginiaGorman, Mrs Teresa
    Bowden, A (Brighton K'pto'n)Gorst, John
    Bowden, Gerald (Dulwich)Gow, Ian
    Bowis, JohnGower, Sir Raymond
    Boyson, Rt Hon Dr Sir RhodesGrant, Sir Anthony (CambsSW)
    Braine, Rt Hon Sir BernardGreenway, Harry (Ealing N)
    Brandon-Bravo, MartinGreenway, John (Ryedale)
    Brazier, JulianGregory, Conal
    Bright, GrahamGriffiths, Sir Eldon (Bury St E')
    Brittan, Rt Hon LeonGriffiths, Peter (Portsmouth N)
    Brooke, Rt Hon PeterGrist, Ian
    Brown, Michael (Brigg & Cl't's)Ground, Patrick
    Browne, John (Winchester)Grylls, Michael
    Buchanan-Smith, Rt Hon AlickHamilton, Hon Archie (Epsom)
    Buck, Sir AntonyHamilton, Neil (Tatton)
    Budgen, NicholasHampson, Dr Keith
    Burns, SimonHanley, Jeremy
    Burt, AlistairHannam, John
    Butcher, JohnHargreaves, A. (B'ham H'll Gr')
    Butler, ChrisHargreaves, Ken (Hyndburn)
    Butterfill, JohnHarris, David
    Carlisle, John, (Luton N)Hawkins, Christopher
    Carlisle, Kenneth (Lincoln)Hayes, Jerry
    Carrington, MatthewHayhoe, Rt Hon Sir Barney
    Carttiss, MichaelHayward, Robert
    Cash, WilliamHeath, Rt Hon Edward
    Channon, Rt Hon PaulHeathcoat-Amory, David
    Chapman, SydneyHeddle, John
    Chope, ChristopherHeseltine, Rt Hon Michael
    Churchill, MrHicks, Mrs Maureen (Wolv' NE)
    Clark, Hon Alan (Plym'th S'n)Higgins, Rt Hon Terence L.
    Clark, Dr Michael (Rochford)Hind, Kenneth
    Clark, Sir W. (Croydon S)Hogg, Hon Douglas (Gr'th'm)
    Clarke, Rt Hon K. (Rushcliffe)Holt, Richard
    Colvin, MichaelHordern, Sir Peter
    Conway, DerekHoward, Michael
    Coombs, Anthony (Wyre F'rest)Howarth, Alan (Strat'd-on-A)
    Coombs, Simon (Swindon)Howarth, G. (Cannock & B'wd)
    Cormack, PatrickHowell, Ralph (North Norfolk)
    Cran, JamesHughes, Robert G. (Harrow W)
    Critchley, JulianHunt, David (Wirral W)
    Currie, Mrs EdwinaHunt, John (Ravensbourne)
    Davies, Q. (Stamf'd & Spald'g)Hunter, Andrew
    Davis, David (Boothferry)Hurd, Rt Hon Douglas
    Day, StephenIrvine, Michael
    Devlin, TimIrving, Charles
    Dickens, GeoffreyJack, Michael
    Dorrell, StephenJackson, Robert
    Douglas-Hamilton, Lord JamesJanman, Tim
    Dover, DenJessel, Toby
    Dunn, BobJohnson Smith, Sir Geoffrey
    Durant, TonyJones, Gwilym (Cardiff N)
    Eggar, TimJones, Robert B (Herts W)
    Emery, Sir PeterJopling, Rt Hon Michael
    Evans, David (Welwyn Hatf'd)Kellett-Bowman, Dame Elaine
    Evennett, DavidKilfedder, James
    Fairbairn, NicholasKing, Roger (B'ham N'thfield)
    Fallon, MichaelKirkhope, Timothy
    Farr, Sir JohnKnapman, Roger
    Favell, TonyKnight, Greg (Derby North)
    Fenner, Dame PeggyKnight, Dame Jill (Edgbaston)
    Field, Barry (Isle of Wight)Knowles, Michael
    Fookes, Miss JanetKnox, David
    Forman, NigelLamont, Rt Hon Norman
    Forsyth, Michael (Stirling)Lang, Ian
    Forth, EricLatham, Michael
    Fowler, Rt Hon NormanLawrence, Ivan
    Franks, CecilLawson, Rt Hon Nigel
    Freeman, RogerLee, John (Pendle)
    French, DouglasLeigh, Edward (Gainsbor'gh)
    Fry, PeterLester, Jim (Broxtowe)
    Gale, RogerLightbown, David
    Gardiner, GeorgeLilley, Peter
    Garel-Jones, TristanLloyd, Sir Ian (Havant)
    Gill, ChristopherLord, Michael
    Gilmour, Rt Hon Sir IanLuce, Rt Hon Richard

    Lyell, Sir NicholasSackville, Hon Tom
    McCrindle, RobertSainsbury, Hon Tim
    Macfarlane, Sir NeilSayeed, Jonathan
    MacGregor, Rt Hon JohnScott, Nicholas
    MacKay, Andrew (E Berkshire)Shaw, David (Dover)
    McLoughlin, PatrickShaw, Sir Giles (Pudsey)
    McNair-Wilson, M. (Newbury)Shaw, Sir Michael (Scarb')
    McNair-Wilson, P. (New Forest)Shelton, William (Streatham)
    Madel, DavidShephard, Mrs G. (Norfolk SW)
    Major, Rt Hon JohnShepherd, Colin (Hereford)
    Malins, HumfreyShepherd, Richard (Aldridge)
    Mans, KeithShersby, Michael
    Maples, JohnSims, Roger
    Marland, PaulSkeet, Sir Trevor
    Marshall, John (Hendon S)Smith, Tim (Beaconsfield)
    Marshall, Michael (Arundel)Soames, Hon Nicholas
    Martin, David (Portsmouth S)Speed, Keith
    Mates, MichaelSpeller, Tony
    Maude, Hon FrancisSpicer, Sir Jim (Dorset W)
    Maxwell-Hyslop, RobinSpicer, Michael (S Worcs)
    Mayhew, Rt Hon Sir PatrickSquire, Robin
    Mellor, DavidStanbrook, Ivor
    Meyer, Sir AnthonySteen, Anthony
    Miller, HalStern, Michael
    Mills, IainStevens, Lewis
    Miscampbell, NormanStewart, Allan (Eastwood)
    Mitchell, Andrew (Gedling)Stewart, Andy (Sherwood)
    Mitchell, David (Hants NW)Stewart, Ian (Hertfordshire N)
    Moate, RogerStokes, John
    Monro, Sir HectorStradling Thomas, Sir John
    Montgomery, Sir FergusSumberg, David
    Moore, Rt Hon JohnTapsell, Sir Peter
    Morris, M (N'hampton S)Taylor, Ian (Esher)
    Morrison, Hon Sir CharlesTaylor, John M (Solihull)
    Moss, MalcolmTebbit, Rt Hon Norman
    Moynihan, Hon ColinTemple-Morris, Peter
    Neale, GerrardThatcher, Rt Hon Margaret
    Needham, RichardThompson, D. (Calder Valley)
    Nelson, AnthonyThompson, Patrick (Norwich N)
    Neubert, MichaelThorne, Neil
    Newton, Rt Hon TonyThornton, Malcolm
    Nicholson, David (Taunton)Thurnham, Peter
    Nicholson, Emma (Devon West)Townend, John (Bridlington)
    Onslow, Rt Hon CranleyTownsend, Cyril D. (B'heath)
    Oppenheim, PhillipTracey, Richard
    Page, RichardTredinnick, David
    Paice, JamesTrippier, David
    Parkinson, Rt Hon CecilTrotter, Neville
    Patnick, IrvineTwinn, Dr Ian
    Patten, John (Oxford W)Vaughan, Sir Gerard
    Pattie, Rt Hon Sir GeoffreyWaddington, Rt Hon David
    Pawsey, JamesWakeham, Rt Hon John
    Peacock, Mrs ElizabethWaldegrave, Hon William
    Porter, Barry (Wirral S)Walden, George
    Porter, David (Waveney)Walker, Bill (T'side North)
    Portillo, MichaelWaller, Gary
    Powell, William (Corby)Walters, Dennis
    Price, Sir DavidWard, John
    Raffan, KeithWardle, Charles (Bexhill)
    Raison, Rt Hon TimothyWarren, Kenneth
    Rathbone, TimWatts, John
    Redwood, JohnWheeler, John
    Renton, TimWhitney, Ray
    Rhodes James, RobertWiddecombe, Ann
    Rhys Williams, Sir BrandonWilkinson, John
    Riddick, GrahamWilshire, David
    Ridley, Rt Hon NicholasWolfson, Mark
    Ridsdale, Sir JulianWood, Timothy
    Roberts, Wyn (Conwy)Woodcock, Mike
    Roe, Mrs MarionYeo, Tim
    Rossi, Sir HughYoung, Sir George (Acton)
    Rost, Peter
    Rowe, AndrewTellers for the Ayes:
    Rumbold, Mrs AngelaMr. Mark Lennox-Boyd and
    Ryder, RichardMr. Peter Lloyd.

    NOES

    Abbott, Ms DianeAlton, David
    Adams, Allen (Paisley N)Archer, Rt Hon Peter
    Allen, GrahamArmstrong, Hilary

    Ashdown, PaddyGolding, Mrs Llin
    Ashley, Rt Hon JackGordon, Mildred
    Ashton, JoeGould, Bryan
    Banks, Tony (Newham NW)Grant, Bernie (Tottenham)
    Barnes, Harry (Derbyshire NE)Griffiths, Nigel (Edinburgh S)
    Barron, KevinGriffiths, Win (Bridgend)
    Battle, JohnGrocott, Bruce
    Beckett, MargaretHattersley, Rt Hon Roy
    Beith, A. J.Haynes, Frank
    Bell, StuartHealey, Rt Hon Denis
    Benn, Rt Hon TonyHeffer, Eric S.
    Bennett, A. F. (D'nt'n & R'dish)Henderson, Doug
    Bermingham, GeraldHinchliffe, David
    Bidwell, SydneyHogg, N. (C'nauld & Kilsyth)
    Blair, TonyHolland, Stuart
    Boyes, RolandHome Robertson, John
    Bradley, KeithHowarth, George (Knowsley N)
    Bray, Dr JeremyHowell, Rt Hon D. (S'heath)
    Brown, Gordon (D'mline E)Howells, Geraint
    Brown, Nicholas (Newcastle E)Hoyle, Doug
    Bruce, Malcolm (Gordon)Hughes, John (Coventry NE)
    Buchan, NormanHughes, Robert (Aberdeen N)
    Caborn, RichardHughes, Roy (Newport E)
    Callaghan, JimHughes, Sean (Knowsley S)
    Campbell, Menzies (Fife NE)Hughes, Simon (Southwark)
    Campbell, Ron (Blyth Valley)Hume, John
    Campbell-Savours, D. N.Illsley, Eric
    Canavan, DennisIngram, Adam
    Carlile, Alex (Mont'g)Janner, Greville
    Clark, Dr David (S Shields)John, Brynmor
    Clarke, Tom (Monklands W)Jones, Barry (Alyn & Deeside)
    Clay, BobJones, leuan (Ynys Môn)
    Clelland, DavidKaufman, Rt Hon Gerald
    Clwyd, Mrs AnnKennedy, Charles
    Cohen, HarryKinnock, Rt Hon Neil
    Coleman, DonaldKirkwood, Archy
    Cook, Frank (Stockton N)Leadbitter, Ted
    Cook, Robin (Livingston)Leighton, Ron
    Corbyn, JeremyLestor, Joan (Eccles)
    Cousins, JimLewis, Terry
    Cox, TomLivingstone, Ken
    Crowther, StanLivsey, Richard
    Cryer, BobLloyd, Tony (Stretford)
    Cummings, JohnLofthouse, Geoffrey
    Cunlirfe, LawrenceMcAllion, John
    Cunningham, Dr JohnMcAvoy, Thomas
    Dalyell, TarnMcCartney, Ian
    Darling, AlistairMacdonald, Calum A.
    Davies, Ron (Caerphilly)McFall, John
    Davis, Terry (B'ham Hodge H'I)McGrady, Eddie
    Dewar, DonaldMcKay, Allen (Barnsley West)
    Dixon, DonMcKelvey, William
    Dobson, FrankMcLeish, Henry
    Doran, FrankMcNamara, Kevin
    Douglas, DickMcTaggart, Bob
    Duffy, A. E. P.McWilliam, John
    Dunnachie, JimmyMadden, Max
    Dunwoody, Hon Mrs GwynethMahon, Mrs Alice
    Eadie, AlexanderMarek, Dr John
    Eastham, KenMarshall, David (Shettleston)
    Evans, John (St Helens N)Marshall, Jim (Leicester S)
    Ewing, Harry (Falkirk E)Martin, Michael J. (Springburn)
    Ewing, Mrs Margaret (Moray)Maxton, John
    Fatchett, DerekMeacher, Michael
    Faulds, AndrewMichie, Bill (Sheffield Heeley)
    Field, Frank (Birkenhead)Millan, Rt Hon Bruce
    Fields, Terry (L'pool B G'n)Mitchell, Austin (G't Grimsby)
    Fisher, MarkMoonie, Dr Lewis
    Flannery, MartinMorgan, Rhodri
    Flynn, PaulMorris, Rt Hon J. (Aberavon)
    Foot, Rt Hon MichaelMowlam, Marjorie
    Foster, DerekMullin, Chris
    Foulkes, GeorgeMurphy, Paul
    Fraser, JohnNellist, Dave
    Galbraith, SamOakes, Rt Hon Gordon
    Galloway, GeorgeO'Neill, Martin
    Garrett, John (Norwich South)Orme, Rt Hon Stanley
    George, BruceParry, Robert
    Gilbert, Rt Hon Dr JohnPatchett, Terry
    Godman, Dr Norman A.Pendry, Tom

    Pike, Peter L.Steel, Rt Hon David
    Powell, Ray (Ogmore)Stott, Roger
    Prescott, JohnStrang, Gavin
    Primarolo, DawnStraw, Jack
    Quin, Ms JoyceTaylor, Mrs Ann (Dewsbury)
    Randall, StuartTaylor, Matthew (Truro)
    Redmond, MartinThomas, Dr Dafydd Elis
    Rees, Rt Hon MerlynTurner, Dennis
    Reid, Dr JohnVaz, Keith
    Richardson, JoWall, Pat
    Robertson, GeorgeWalley, Joan
    Robinson, GeoffreyWardell, Gareth (Gower)
    Rogers, AllanWareing, Robert N.
    Rooker, JeffWelsh, Andrew (Angus E)
    Ross, Ernie (Dundee W)Welsh, Michael (Doncaster N)
    Rowlands, TedWigley, Dafydd
    Sedgemore, BrianWilliams, Rt Hon Alan
    Sheerman, BarryWilliams, Alan W. (Carm'then)
    Sheldon, Rt Hon RobertWilson, Brian
    Shore, Rt Hon PeterWinnick, David
    Short, ClareWise, Mrs Audrey
    Skinner, DennisWorthington, Tony
    Smith, Andrew (Oxford E)Young, David (Bolton SE)
    Smith, C. (Isl'ton & F'bury)
    Smith, Cyril (Rochdale)Tellers for the Noes:
    Smith, Rt Hon J. (Monk'ds E)Mrs. Ray Michie and
    Snape, PeterMr. Ronnie Fearn.
    Soley, Clive

    Question accordingly agreed to.

    May I have the leave of the House to put motions 20, 21 and 22 together? There does not appear to be any objection to that being done.