Section 515A | Diminishing shared ownership arrangements: further provision in respect of refinancing

(1)This section applies in respect of diminishing shared ownership arrangements to which section 504A applies.

(2)If, under the arrangements, the customer disposes of an asset as mentioned in section 504A(1)(b), any gain accruing to the customer on the disposal of the asset is to be treated as not having accrued for the purposes of the Corporation Tax Acts.

(3)If, under the arrangements, the customer—

(a)disposes of an asset as mentioned in section 504A(1)(b),

(b)acquires the asset as mentioned in section 504A(1)(d) and (e) or (2)(c) and (d),

(c)and subsequently disposes of the asset,

the disposal of the asset mentioned in paragraph (a) and the acquisition of the asset mentioned in paragraph (b) (together with any intervening disposals or acquisitions of the asset) are to be treated as not having occurred for the purpose of computing, for the purposes of the Corporation Tax Acts, the amount of the gain accruing to the customer on the subsequent disposal of the asset.

(4)In subsections (2) and (3),”the customer” has the same meaning as in section 504A.

(5)If, under arrangements to which section 504A(2) applies (“successor arrangements”), the financier under the diminishing shared ownership arrangements that the successor arrangements supersede transfers their interest in a lease forming part of those arrangements to the financier under the successor arrangements, the transfer is not to be treated as involving a disposal or acquisition of the interest for the purposes of the Corporation Tax Acts.