Section 505 | Qualifying dwelling-houses: exclusions

(1)A dwelling-house is not a qualifying dwelling-house if any of the exclusions given below apply.^F1

Exclusion 1The landlord under the tenancy is—

a housing association which is approved for the purposes of Chapter 7 of Part 13 of CTA 2010 , or

a self-build society within the meaning of the Housing Associations Act 1985 (c. 69).

Exclusion 2The landlord and the tenant are connected persons.

Exclusion 3The tenant is a director of a company which is or is connected with the landlord.

Exclusion 4The landlord is a close company and the tenant is, for the purposes of Part XI of ICTA—

a participator in that company, or

an associate of such a participator.

Exclusion 5The tenancy is entered into as part of a mutual arrangement for avoidance.

(2)In exclusion 5, a “mutual arrangement for avoidance” means an arrangement—

(a)between the landlords (or owners) of different dwelling-houses, and

(b)under which one landlord takes a person as a tenant in circumstances in which, if that person was the tenant of a dwelling-house let by the other landlord, that dwelling-house would not be a qualifying dwelling-house because of exclusion 2, 3 or 4.