Paragraph 3

United Kingdom

(1)

An amount of a loan is “outstanding” for the purposes of F1paragraphs 1 and 1A if the relevant principal amount exceeds the repayment amount.

(2)

In sub-paragraph (1) “relevant principal amount”, in relation to a loan, means the total of—

(a)

the initial principal amount lent, and

(b)

any sums that have become principal under the loan, otherwise than by capitalisation of interest.

(3)

In sub-paragraph (1) “repayment amount”, in relation to a loan, means the total of—

(a)

the amount of principal under the loan that has been repaid before 17 March 2016, and

(b)

payments in money made by the relevant person on or after 17 March 2016 by way of repayment of principal under the loan.

Annotations

F1: Words in Sch. 11 para. 3(1) substituted (22.7.2020) by Finance Act 2020 (c. 14), Sch. 2 para. 28