EIM03110 - Removal or transfer costs: expenses and benefits to which Section 271 ITEPA 2003 applies: acquisition of new residence

Sections 277 and 278 ITEPA 2003

Acquisition covers both the purchase of a new residence and the acquisition of a tenancy or other interest. Other interest has a wide meaning (see EIM03109).

The property must be owned by, or the tenancy or other interest held by:

• the employee
• the employee and one or more members of his or her family or household (see EIM20504), or
• one or more members of the employee’s family or household.

Relief is also available where an intended acquisition does not take place, either for reasons outside the control of the person acquiring the interest, or because that person reasonably decides not to go ahead. An example of the first sort would be where the person selling a property decides to take it off the market. An example of the second sort would be the purchaser pulling out because of an adverse survey report.

The specific expenses and benefits covered are:

• legal expenses and services connected with the acquisition
• legal expenses and services connected with any loan raised to acquire the interest in the property
• procurement or arrangement fees connected with such a loan
• mortgage indemnity premiums
• survey or inspection of the property. This covers both structural surveys and building society valuations.
• Land Registry fees in England and Wales
• fees payable to the Keeper of the Registers of Scotland
• fees payable to the Land Registry in Northern Ireland or to the Registry of Deeds for Northern Ireland
• stamp duty
• connection of electricity, gas, water and telephone services.