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Housing Act 1996 (c. 52)

(The document as of February, 2008)

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(1) The requisite majority of qualifying tenants of the constituent flats may serve a notice on the purchaser requiring him--

(a) to give particulars of the terms on which the original disposal was made (including the deposit and consideration required) and the date on which it was made, and

(b) where the disposal consisted of entering into a contract, to provide a copy of the contract.

(2) The notice must specify the name and address of the person to whom (on behalf of the tenants) the particulars are to be given, or the copy of the contract provided.

(3) Any notice under this section must be served before the end of the period of four months beginning with the date by which--

(a) notices under section 3A of the [1985 c 70.] Landlord and Tenant Act 1985 (duty of new landlord to inform tenants of rights) relating to the original disposal, or

(b) where that section does not apply, documents of any other description--

(i) indicating that the original disposal has taken place, and

(ii) alerting the tenants to the existence of their rights under this Part and the time within which any such rights must be exercised,

have been served on the requisite majority of qualifying tenants of the constituent flats.

(4) A person served with a notice under this section shall comply with it within the period of one month beginning with the date on which it is served on him.

12A Right of qualifying tenants to take benefit of contract

(1) Where the original disposal consisted of entering into a contract, the requisite majority of qualifying tenants of the constituent flats may by notice to the landlord elect that the contract shall have effect as if entered into not with the purchaser but with a person or persons nominated for the purposes of this section by the requisite majority of qualifying tenants of the constituent flats.

(2) Any such notice must be served before the end of the period of six months beginning--

(a) if a notice was served on the purchaser under section 11A (right to information as to terms of disposal, &c.), with the date on which the purchaser complied with that notice;

(b) in any other case, with the date by which documents of any description--

(i) indicating that the original disposal has taken place, and

(ii) alerting the tenants to the existence of their rights under this Part and the time within which any such rights must be exercised,

have been served on the requisite majority of qualifying tenants of the constituent flats.

(3) The notice shall not have effect as mentioned in subsection (1) unless the nominated person--

(a) fulfils any requirements as to the deposit required on entering into the contract, and

(b) fulfils any other conditions required to be fulfilled by the purchaser on entering into the contract.

(4) Unless otherwise agreed, any time limit in the contract as it has effect by virtue of a notice under this section shall start to run again on the service of that notice; and nothing in the contract as it has effect by virtue of a notice under this section shall require the nominated person to complete the purchase before the end of the period of 28 days beginning with the day on which he is deemed to have entered into the contract.

(5) Where the original disposal related to other property in addition to premises to which this Part applied at the time of the disposal--

(a) a notice under this section has effect only in relation to the premises to which this Part applied at the time of the original disposal, and

(b) the terms of the contract shall have effect with any necessary modifications.

In such a case the notice under this section may specify the subject-matter of the disposal, and the terms on which the disposal is to be made (whether doing so expressly or by reference to the original disposal), or may provide for that estate or interest, or any such terms, to be determined by a leasehold valuation tribunal.

12B Right of qualifying tenants to compel sale, &c. by purchaser

(1) This section applies where--

(a) the original disposal consisted of entering into a contract and no notice has been served under section 12A (right of qualifying tenants to take benefit of contract), or

(b) the original disposal did not consist of entering into a contract.

(2) The requisite majority of qualifying tenants of the constituent flats may serve a notice (a "purchase notice") on the purchaser requiring him to dispose of the estate or interest that was the subject-matter of the original disposal, on the terms on which it was made (including those relating to the consideration payable), to a person or persons nominated for the purposes of this section by any such majority of qualifying tenants of those flats.

(3) Any such notice must be served before the end of the period of six months beginning--

(a) if a notice was served on the purchaser under section 11A (right to information as to terms of disposal, &c.), with the date on which the purchaser complied with that notice;

(b) in any other case, with the date by which--

(i) notices under section 3A of the [1985 c 70.] Landlord and Tenant Act 1985 (duty of new landlord to inform tenants of rights) relating to the original disposal, or

(ii) where that section does not apply, documents of any other description indicating that the original disposal has taken place, and alerting the tenants to the existence of their rights under this Part and the time within which any such rights must be exercised,

have been served on the requisite majority of qualifying tenants of the constituent flats.

(4) A purchase notice shall where the original disposal related to other property in addition to premises to which this Part applied at the time of the disposal--

(a) require the purchaser only to make a disposal relating to those premises, and

(b) require him to do so on the terms referred to in subsection (2) with any necessary modifications.

In such a case the purchase notice may specify the subject-matter of the disposal, and the terms on which the disposal is to be made (whether doing so expressly or by reference to the original disposal), or may provide for those matters to be determined by a leasehold valuation tribunal.

(5) Where the property which the purchaser is required to dispose of in pursuance of the purchase notice has since the original disposal become subject to any charge or other incumbrance, then, unless the court by order directs otherwise--

(a) in the case of a charge to secure the payment of money or the performance of any other obligation by the purchaser or any other person, the instrument by virtue of which the property is disposed of by the purchaser to the person or persons nominated for the purposes of this section shall (subject to the provisions of Part I of Schedule 1) operate to discharge the property from that charge; and

(b) in the case of any other incumbrance, the property shall be so disposed of subject to the incumbrance but with a reduction in the consideration payable to the purchaser corresponding to the amount by which the existence of the incumbrance reduces the value of the property.

(6) Subsection (5)(a) and Part I of Schedule 1 apply, with any necessary modifications, to mortgages and liens as they apply to charges; but nothing in those provisions applies to a rentcharge.

(7) Where the property which the purchaser is required to dispose of in pursuance of the purchase notice has since the original disposal increased in monetary value owing to any change in circumstances (other than a change in the value of money), the amount of the consideration payable to the purchaser for the disposal by him of the property in pursuance of the purchase notice shall be the amount that might reasonably have been obtained on a corresponding disposal made on the open market at the time of the original disposal if the change in circumstances had already taken place.

12C Right of qualifying tenants to compel grant of new tenancy by superior landlord

(1) This section applies where the original disposal consisted of the surrender by the landlord of a tenancy held by him ("the relevant tenancy").

(2) The requisite majority of qualifying tenants of the constituent flats may serve a notice on the purchaser requiring him to grant a new tenancy of the premises which were subject to the relevant tenancy, on the same terms as those of the relevant tenancy and so as to expire on the same date as that tenancy would have expired, to a person or persons nominated for the purposes of this section by any such majority of qualifying tenants of those flats.

(3) Any such notice must be served before the end of the period of six months beginning--

(a) if a notice was served on the purchaser under section 11A (right to information as to terms of disposal, &c.), with the date on which the purchaser complied with that notice;

(b) in any other case, with the date by which documents of any description--

(i) indicating that the original disposal has taken place, and

(ii) alerting the tenants to the existence of their rights under this Part and the time within which any such rights must be exercised,

have been served on the requisite majority of qualifying tenants of the constituent flats.

(4) If the purchaser paid any amount to the landlord as consideration for the surrender by him of that tenancy, the nominated person shall pay that amount to the purchaser.

(5) Where the premises subject to the relevant tenancy included premises other than premises to which this Part applied at the time of the disposal, a notice under this section shall--

(a) require the purchaser only to grant a new tenancy relating to the premises to which this Part then applied, and

(b) require him to do so on the terms referred to in subsection (2) subject to any necessary modifications.

(6) The purchase notice may specify the subject-matter of the disposal, and the terms on which the disposal is to be made (whether doing so expressly or by reference to the original disposal), or may provide for those matters to be determined by a leasehold valuation tribunal.

12D Nominated persons: supplementary provisions

(1) The person or persons initially nominated for the purposes of section 12A, 12B or 12C shall be nominated in the notice under that section.

(2) A person nominated for those purposes by the requisite majority of qualifying tenants of the constituent flats may be replaced by another person so nominated if, and only if, he has (for any reason) ceased to be able to act as a nominated person.

(3) Where two or more persons have been nominated and any of them ceases to act without being replaced, the remaining person or persons so nominated may continue to act.

(4) Where, in the exercise of its power to award costs, the court or the Lands Tribunal makes, in connection with any proceedings arising under or by virtue of this Part, an award of costs against the person or persons so nominated, the liability for those costs is a joint and several liability of that person or those persons together with the qualifying tenants by whom the relevant notice was served.

13 Determination of questions by leasehold valuation tribunal

(1) A leasehold valuation tribunal has jurisdiction to hear and determine--

(a) any question arising in relation to any matters specified in a notice under section 12A, 12B or 12C, and

(b) any question arising for determination as mentioned in section 8C(4), 12A(5) or 12B(4) (matters left for determination by tribunal).

(2) On an application under this section the interests of the persons by whom the notice was served under section 12A, 12B or 12C shall be represented by the nominated person; and accordingly the parties to any such application shall not include those persons.

14 Withdrawal of nominated person from transaction under s.12B or 12C

(1) Where notice has been duly served on the landlord under--

  • section 12B (right of qualifying tenants to compel sale, &c by purchaser), or

  • section 12C (right of qualifying tenants to compel grant of new tenancy by superior landlord),

the nominated person may at any time before a binding contract is entered into in pursuance of the notice, serve notice under this section on the purchaser (a "notice of withdrawal") indicating an intention no longer to proceed with the disposal.

(2) If at any such time the nominated person becomes aware that the number of qualifying tenants of the constituent flats desiring to proceed with the disposal is less than the requisite majority of those tenants, he shall forthwith serve a notice of withdrawal.

(3) If a notice of withdrawal is served under this section the purchaser may recover from the nominated person any costs reasonably incurred by him in connection with the disposal down to the time when the notice is served on him.

(4) If a notice of withdrawal is served at a time when proceedings arising under or by virtue of this Part are pending before the court or the Lands Tribunal, the liability of the nominated person for any costs incurred by the purchaser as mentioned in subsection (3) shall be such as may be determined by the court or (as the case may be) by the Tribunal.

(5) The costs that may be recovered by the purchaser under this section do not include any costs incurred by him in connection with an application to a leasehold valuation tribunal. "



Part III Enforcement of rights against subsequent purchasers and termination of rights

The following sections replace sections 16 and 17 of the [1987 c. 31.] Landlord and Tenant Act 1987--



" Enforcement by tenants of rights against subsequent purchasers

16 Rights of qualifying tenants against subsequent purchaser

(1) This section applies where, at the time when a notice is served on the purchaser under section 11A, 12A, 12B or 12C, he no longer holds the estate or interest that was the subject-matter of the original disposal.

(2) In the case of a notice under section 11A (right to information as to terms of disposal, &c.) the purchaser shall, within the period for complying with that notice--

(a) serve notice on the person specified in the notice as the person to whom particulars are to be provided of the name and address of the person to whom he has disposed of that estate or interest ("the subsequent purchaser"), and

(b) serve on the subsequent purchaser a copy of the notice under section 11A and of the particulars given by him in response to it.

(3) In the case of a notice under section 12A, 12B or 12C the purchaser shall forthwith--

(a) forward the notice to the subsequent purchaser, and

(b) serve on the nominated person notice of the name and address of the subsequent purchaser.

(4) Once the purchaser serves a notice in accordance with subsection (2)(a) or (3)(b), sections 12A to 14 shall, instead of applying to the purchaser, apply to the subsequent purchaser as if he were the transferee under the original disposal.

(5) Subsections (1) to (4) have effect, with any necessary modifications, in a case where, instead of disposing of the whole of the estate or interest referred to in subsection (1) to another person, the purchaser has disposed of it in part or in parts to one or more other persons.

In such a case, sections 12A to 14--

(a) apply to the purchaser in relation to any part of that estate or interest retained by him, and

(b) in relation to any part of that estate or interest disposed of to any other person, apply to that other person instead as if he were (as respects that part) the transferee under the original disposal.



Termination of rights against purchasers or subsequent purchasers

17 Termination of rights against purchaser or subsequent purchaser

(1) If, at any time after a notice has been served under section 11A, 12A, 12B or 12C, the premises affected by the original disposal cease to be premises to which this Part applies, the purchaser may serve a notice on the qualifying tenants of the constituent flats stating--

(a) that the premises have ceased to be premises to which this Part applies, and

(b) that any such notice served on him, and anything done in pursuance of it, is to be treated as not having been served or done.

(2) A landlord who has not served such a notice on all of the qualifying tenants of the constituent flats shall nevertheless be treated as having duly served a notice under subsection (1)--

(a) if he has served such a notice on not less than 90% of those tenants, or

(b) where those qualifying tenants number less than ten, if he has served such a notice on all but one of them.

(3) Where a period of three months beginning with the date of service of a notice under section 12A, 12B or 12C on the purchaser has expired--

(a) without any binding contract having been entered into between the purchaser and the nominated person, and

(b) without there having been made any application in connection with the notice to the court or to a leasehold valuation tribunal,

the purchaser may serve on the nominated person a notice stating that the notice, and anything done in pursuance of it, is to be treated as not having been served or done.

(4) Where any such application as is mentioned in subsection (3)(b) was made within the period of three months referred to in that subsection, but--

(a) a period of two months beginning with the date of the determination of that application has expired,

(b) no binding contract has been entered into between the purchaser and the nominated person, and

(c) no other such application as is mentioned in subsection (3)(b) is pending,

the purchaser may serve on the nominated person a notice stating that any notice served on him under section 12A, 12B or 12C, and anything done in pursuance of any such notice, is to be treated as not having been served or done.

(5) Where the purchaser serves a notice in accordance with subsection (1), (3) or (4), this Part shall cease to have effect in relation to him in connection with the original disposal.

(6) Where a purchaser is entitled to serve a notice under subsection (1) but does not do so, this Part shall continue to have effect in relation to him in connection with the original disposal as if the premises in question were still premises to which this Part applies.

(7) References in this section to the purchaser include a subsequent purchaser to whom sections 12A to 14 apply by virtue of section 16(4) or (5). "



Part IV Consequential amendments

1 In section 4(2) of the [1987 c. 31.] Landlord and Tenant Act 1987 (relevant disposals: excluded disposals), in paragraph (aa) (disposals by way of security for a loan) omit the words "consisting of the creation of an estate or interest".

2 Before section 19 of the Landlord and Tenant Act 1987, under the heading "Supplementary provisions", insert--

" 18A The requisite majority of qualifying tenants

(1) In this Part "the requisite majority of qualifying tenants of the constituent flats" means qualifying tenants of constituent flats with more than 50 per cent. of the available votes.

(2) The total number of available votes shall be determined as follows--

(a) where an offer notice has been served under section 5, that number is equal to the total number of constituent flats let to qualifying tenants on the date when the period specified in that notice as the period for accepting the offer expires;

(b) where a notice is served under section 11A without a notice having been previously served under section 5, that number is equal to the total number of constituent flats let to qualifying tenants on the date of service of the notice under section 11A;

(c) where a notice is served under section 12A, 12B or 12C without a notice having been previously served under section 5 or section 11A, that number is equal to the total number of constituent flats let to qualifying tenants on the date of service of the notice under section 12A, 12B or 12C, as the case may be.

(3) There is one available vote in respect of each of the flats so let on the date referred to in the relevant paragraph of subsection (2), which shall be attributed to the qualifying tenant to whom it is let.

(4) The persons constituting the requisite majority of qualifying tenants for one purpose may be different from the persons constituting such a majority for another purpose. "

3 (1) Section 20(1) of the [1987 c. 31.] Landlord and Tenant Act 1987 (interpretation of Part I) is amended as follows.

(2) For the definition of "acceptance notice" substitute--

" "acceptance notice" has the meaning given by section 6(3); "

(3) For the definition of "constituent flat" substitute--

" "constituent flat" shall be construed in accordance with section 5(1) or 11(2), as the case may require; "

(4) Omit the definition of "the new landlord".

(5) After that definition insert--

" "the nominated person" means the person or persons for the time being nominated by the requisite majority of the qualifying tenants of the constituent flats for the purposes of section 6, 12A, 12B or 12C, as the case may require; "

(6) For the definition of "the protected interest" substitute--

" "the protected interest" means the estate, interest or other subject-matter of an offer notice; "

(7) After that definition insert--

" "the protected period" has the meaning given by section 6(4); "

(8) For the definition of "purchase notice" substitute--

" "purchase notice" has the meaning given by section 12B(2); "

(9) After that definition insert--

" "purchaser" has the meaning given by section 11(3); "

(10) In the definition of "the requisite majority" for "section 5(6) and (7)" substitute "section 18A".

4 In section 20(2) of the Landlord and Tenant Act 1987, omit the words "or counter-offer" in each place where they occur.

5 In Part III of the Landlord and Tenant Act 1987 (compulsory acquisition by tenants of their landlord's interest), in section 31 (determination of terms by rent assessment committees)--

(a) for "rent assessment committee", wherever occurring, substitute "leasehold valuation tribunal";

(b) for "such a committee" or "the committee", wherever occurring, substitute "the tribunal"; and

(c) omit subsection (5).

6 In section 52(1) of the Landlord and Tenant Act 1987 (jurisdiction of county courts) for "rent assessment committee" substitute "leasehold valuation tribunal".

7 After section 52 of the Landlord and Tenant Act 1987 insert--

" 52A Jurisdiction of leasehold valuation tribunal under Part I or III

(1) Any jurisdiction conferred by Part I or III of this Act on a leasehold valuation tribunal is exercisable by a rent assessment committee constituted in accordance with Schedule 10 to the [1977 c. 42.] Rent Act 1977 which when so constituted for the purposes of exercising any such jurisdiction shall be known as a leasehold valuation tribunal.

(2) The power to make regulations under section 74(1)(b) of the Rent Act 1977 (procedure of rent assessment committees) extends to prescribing the procedure to be followed in connection with any proceedings before a leasehold valuation tribunal under this Act.

(3) Any application under this Act to a leasehold valuation tribunal must be in such form, and contain such particulars, as the Secretary of State may by regulations prescribe.

(4) Any costs incurred by a party to any such application in connection with the application shall be borne by that party.

(5) Paragraphs 1, 2, 3 and 7 of Schedule 22 to the [1980 c. 51.] Housing Act 1980 (supplementary provisions relating to leasehold valuation tribunals: constitution, appeals and provision of information) apply to a leasehold valuation tribunal constituted for the purposes of this section. "

8 In section 53(2)(b) of the [1987 c. 31.] Landlord and Tenant Act 1987 (regulations subject to negative resolution), for the words from "section 13(2)" to "section 31)" substitute "section 52A(3)".

9 In section 54(4) of the Landlord and Tenant Act 1987 (saving for power under section 20(4)) for "either of the periods specified in section 5(2)" substitute "any of the periods specified in section 5A(4) or (5), 5B(5) or (6), 5C(4) or (5), 5D(4) or (5) or 5E(3)".

10 In section 60(1) of the Landlord and Tenant Act 1987 (general interpretation), omit the definition of "rent assessment committee".

11 (1) In Schedule 1 to the Landlord and Tenant Act 1987 (discharge of mortgages, &c), in paragraph 1 (construction of provisions relating to discharge in pursuance of purchase notice)--

(a) for the words "the new landlord" wherever they appear substitute "the purchaser";

(b) in the definition of "consideration payable"--

(i) for the words "section 12(4)" substitute "section 12B(7)", and

(ii) for the words "section 16(2) or (3)" substitute "section 16(4) or (5)";

(c) in the definition of "nominated person", for the words "section 12(1)" substitute "section 12B(2)".

(2) In paragraphs 2, 4 and 5 of that Schedule (duty of nominated person to redeem mortgages, payments into court and savings)--

(a) for the words "section 12(4)(a)" wherever they appear substitute "section 12B(5)(a)";

(b) for the words "the new landlord" or "the new landlord's" wherever they appear substitute "the purchaser" or "the purchaser's".



Section 96.

SCHEDULE 7 Assured tenancies: schedule inserted after Schedule 2 to the Housing Act 1988



" SCHEDULE 2A Assured Tenancies: Non-Shortholds



Tenancies excluded by notice

1 (1) An assured tenancy in respect of which a notice is served as mentioned in sub-paragraph (2) below.

(2) The notice referred to in sub-paragraph (1) above is one which--

(a) is served before the assured tenancy is entered into,

(b) is served by the person who is to be the landlord under the assured tenancy on the person who is to be the tenant under that tenancy, and

(c) states that the assured tenancy to which it relates is not to be an assured shorthold tenancy.

2 (1) An assured tenancy in respect of which a notice is served as mentioned in sub-paragraph (2) below.

(2) The notice referred to in sub-paragraph (1) above is one which--

(a) is served after the assured tenancy has been entered into,

(b) is served by the landlord under the assured tenancy on the tenant under that tenancy, and

(c) states that the assured tenancy to which it relates is no longer an assured shorthold tenancy.



Tenancies containing exclusionary provision

3 An assured tenancy which contains a provision to the effect that the tenancy is not an assured shorthold tenancy.



Tenancies under section 39

4 An assured tenancy arising by virtue of section 39 above, other than one to which subsection (7) of that section applies.



Former secure tenancies

5 An assured tenancy which became an assured tenancy on ceasing to be a secure tenancy.



Tenancies under Schedule 10 to the Local Government and Housing Act 1989

6 An assured tenancy arising by virtue of Schedule 10 to the [1989 c. 42.] Local Government and Housing Act 1989 (security of tenure on ending of long residential tenancies).



Tenancies replacing non-shortholds

7 (1) An assured tenancy which--

(a) is granted to a person (alone or jointly with others) who, immediately before the tenancy was granted, was the tenant (or, in the case of joint tenants, one of the tenants) under an assured tenancy other than a shorthold tenancy ("the old tenancy"),

(b) is granted (alone or jointly with others) by a person who was at that time the landlord (or one of the joint landlords) under the old tenancy, and

(c) is not one in respect of which a notice is served as mentioned in sub-paragraph (2) below.

(2) The notice referred to in sub-paragraph (1)(c) above is one which--

(a) is in such form as may be prescribed,

(b) is served before the assured tenancy is entered into,

(c) is served by the person who is to be the tenant under the assured tenancy on the person who is to be the landlord under that tenancy (or, in the case of joint landlords, on at least one of the persons who are to be joint landlords), and

(d) states that the assured tenancy to which it relates is to be a shorthold tenancy.

8 An assured tenancy which comes into being by virtue of section 5 above on the coming to an end of an assured tenancy which is not a shorthold tenancy.



Assured agricultural occupancies

9 (1) An assured tenancy--

(a) in the case of which the agricultural worker condition is, by virtue of any provision of Schedule 3 to this Act, for the time being fulfilled with respect to the dwelling-house subject to the tenancy, and

(b) which does not fall within sub-paragraph (2) or (4) below.

(2) An assured tenancy falls within this sub-paragraph if--

(a) before it is entered into, a notice--

(i) in such form as may be prescribed, and

(ii) stating that the tenancy is to be a shorthold tenancy,

is served by the person who is to be the landlord under the tenancy on the person who is to be the tenant under it, and

(b) it is not an excepted tenancy.

(3) For the purposes of sub-paragraph (2)(b) above, an assured tenancy is an excepted tenancy if--

(a) the person to whom it is granted or, as the case may be, at least one of the persons to whom it is granted was, immediately before it is granted, a tenant or licensee under an assured agricultural occupancy, and

(b) the person by whom it is granted or, as the case may be, at least one of the persons by whom it is granted was, immediately before it is granted, a landlord or licensor under the assured agricultural occupancy referred to in paragraph (a) above.

(4) An assured tenancy falls within this sub-paragraph if it comes into being by virtue of section 5 above on the coming to an end of a tenancy falling within sub-paragraph (2) above. "



Section 104.

SCHEDULE 8 Assured tenancies: consequential amendments



Housing Act 1985 (c. 68)

1 In section 553(2) of the Housing Act 1985, for paragraph (c) there shall be substituted--

" (c) the tenancy is not by virtue of any provision of Part I of the Housing Act 1988 an assured shorthold tenancy; "



Housing Act 1988 (c. 50)

2 (1) The Housing Act 1988 shall be amended as follows.

(2) In section 14, there shall be inserted at the end--

" (9) This section shall apply in relation to an assured shorthold tenancy as if in subsection (1) the reference to an assured tenancy were a reference to an assured shorthold tenancy. "

(3) In section 20, for the side-note and subsection (1) there shall be substituted--

" 20 Assured shorthold tenancies: pre-Housing Act 1996 tenancies

(1) Subject to subsection (3) below, an assured tenancy which is not one to which section 19A above applies is an assured shorthold tenancy if--

(a) it is a fixed term tenancy granted for a term certain of not less than six months,

(b) there is no power for the landlord to determine the tenancy at any time earlier than six months from the beginning of the tenancy, and

(c) a notice in respect of it is served as mentioned in subsection (2) below. "

(4) In that section, after subsection (5) there shall be inserted--

" (5A) Subsections (3) and (4) above do not apply where the new tenancy is one to which section 19A above applies. "

(5) In section 22, in subsection (1), the words from "in respect of" to "above" shall be omitted.

(6) In that section, after subsection (5) there shall be inserted--

" (5A) Where--

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