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2(1)The grant of a lease of a dwelling is exempt from charge if the lease—
(a)is granted by a registered social landlord to one or more individuals in accordance with arrangements to which this paragraph applies, and
(b)is for an indefinite term or is terminable by notice of a month or less.
(2)This paragraph applies to arrangements between a registered social landlord and a housing authority under which the landlord provides, for individuals nominated by the authority in pursuance of its statutory housing functions, temporary rented accommodation which the landlord itself has obtained on a short-term basis.
The reference above to accommodation obtained by the landlord “on a short-term basis” is to accommodation leased to the landlord for a term of five years or less.
(3)A “housing authority” means—
(a)in relation to England and Wales—
(i)a principal council within the meaning of the Local Government Act 1972 (c. 70), or
(ii)the Common Council of the City of London;
(b)in relation to Scotland, a council constituted under section 2 of the Local Government etc. (Scotland) Act 1994 (c. 39);
(c)in relation to Northern Ireland—
(i)the Department for Social Development in Northern Ireland, or
(ii)the Northern Ireland Housing Executive.
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