Section 259 | Gifts to housing associations.

(1)Subsection (2) below shall apply where—

(a)a disposal of an estate or interest in land in the United Kingdom is made to a relevant housing provider otherwise than under a bargain at arm’s length, and^F1

(b)a claim for relief under this section is made by the transferor and the relevant housing provider.^F2

(2)Section 17(1) shall not apply; but if the disposal is by way of gift or for a consideration not exceeding the sums allowable as a deduction under section 38, then—

(a)the disposal and acquisition shall be treated for the purposes of this Act as being made for such consideration as to secure that neither a gain nor a loss accrues on the disposal, and

(b)where, after the disposal, the estate or interest is disposed of by the relevant housing provider, its acquisition by the person making the earlier disposal shall be treated for the purposes of this Act as the acquisition of the relevant housing provider.^F3

(3)In this section “relevant housing provider” means—^F4

(a)a non-profit registered provider of social housing,^F4

(b)a registered social landlord within the meaning of Part 1 of the Housing Act 1996,^F4

(c)a body registered in the register maintained under section 20(1) of the Housing (Scotland) Act 2010, or^F4F5

(d)a registered housing association within the meaning of Part 2 of the Housing (Northern Ireland) Order 1992.^F4

(4)In subsection (2)(b) above the first reference to a disposal includes a disposal to which section 146A(2) of the 1979 Act applied where the association which acquired the estate or interest in land on that disposal disposes of it after the coming into force of this section.