Section 564WA — Income Tax Act 2007: Diminishing shared ownership arrangements: further provision in respect of refinancing

Diminishing shared ownership arrangements: further provision in respect of refinancing 564WA 1 This section applies in respect of diminishing shared ownership arrangements to which 564DA applies.

2 If, under the arrangements, the customer disposes of an asset as mentioned in section 564DA(1)(b), any profit, gain or loss realised by the customer on the disposal of the asset is to be treated as not having been realised for income tax purposes.

3 If, under the arrangements, the customer—

a disposes of an asset as mentioned in section 564DA(1)(b),

b acquires the asset as mentioned in section 564DA(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 calculating, for income tax purposes, the amount of the profit, gain or loss realised by customer on the subsequent disposal of the asset.

4 In subsections (2) and (3), “ the customer ” has the same meaning as in section 564DA.

5 If, under arrangements to which section 564DA(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 income tax purposes.