
1 

(1) These Regulations may be cited as the Income Tax (Interest Relief) (Housing Associations) (No. 3) Regulations 1987 and shall come into force on 6th April 1987.
(2) In these Regulations“the Housing Associations Regulations” means the Income Tax (Interest Relief) (Housing Associations) Regulations 1983.
2 
In paragraph (b) of regulation 5 of the Housing Associations Regulations (which provides, in the case of housing associations paying mortgage interest on limited loans, for a substituted paragraph 5 in Schedule 7 to the Finance Act 1982)—
(a) there shall be added at the end of sub-paragraph (2) of that substituted paragraph and in sub-paragraph (4) of the same paragraph after the words“sub-paragraph (2) above” the words“or the loan is a limited loan made on or after 6th April 1987”; and
(b) there shall be inserted in that substituted paragraph after sub-paragraph (3)—“
(3A) The reference in sub-paragraph (1) above to a loan only part of the interest on which would (apart from the principal section) be eligible for relief under section 75 of the Finance Act 1972 includes a reference to each of two or more loans if, by virtue of sub- paragraph (4)(b) of paragraph 5 of the 1974 Schedule, the interest on the loans falls to be treated for the purposes of that paragraph as payable on one loan; but, notwithstanding that each of those loans is accordingly a limited loan for the purposes of this paragraph, none of the interest on any of them is relevant loan interest unless each of the loans was made by the same qualifying lender.”.
Mark Lennox-Boyd
Michael Neubert
Two of the Lords Commissioners of Her Majesty’s Treasury
12th March 1987