Paragraph 5
United Kingdom
For any year of assessment (“the relevant year”) the alternative method of calculation set out in this paragraph applies if—
the inspector so requires, by notice given to the employee, F1at a time allowed by sub-paragraph (2) below; or
the employee so elects, by notice given to the inspector F2at such a time.
A notice containing a requirement or election for the purposes of sub-paragraph (1) above is allowed to be given at any time before the end of the period of 12 months beginning with the 31st January next following the relevant year.
The alternative method of calculating the amount of interest at the official rate payable on a loan for the relevant year is as follows—
take each period in the relevant year during which the official rate of interest remains the same;
for each such period take for each day in the period the maximum amount outstanding of the loan on that day, and add those amounts together;
multiply that sum by the official rate in force during the period divided by 365; and
add together the resulting figures for each period in the relevant year.
Annotations
Textual amendments
- F1
Words in Sch. 7 para. 5(1)(a) substituted (with effect in accordance with s. 107(4) of the amending Act) by Finance Act 1996 (c. 8), s. 107(2)(a)
- F2
Words in Sch. 7 para. 5(1)(b) substituted (with effect in accordance with s. 107(4) of the amending Act) by Finance Act 1996 (c. 8), s. 107(2)(b)
- F3
Sch. 7 para. 5(2) substituted (with effect in accordance with s. 107(4) of the amending Act) by Finance Act 1996 (c. 8), s. 107(3)
Notes on Schedule 7
Textual amendments
- F1
Schs. 6, 6A, 7, 7A repealed (6.4.2003 with effect in accordance with s. 723(1) of the repealing Act) by Income Tax (Earnings and Pensions) Act 2003 (c. 1), Sch. 6 paras. 110, 111, Sch 8 Pt. 1 (with Sch. 7)