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Paragraph 9 The calculation for loansI1

Northern Ireland Not yet in force

Changes not yet applied. Later legislation changes this provision in ways not yet written into the text below:

(1)

The weekly amount of existing housing costs or, as the case may be, new housing costs to be met under this Schedule in respect of a loan which qualifies under paragraph 14 or 15 shall be calculated by applying the formula—

(A×B)×C52

where—

  • A = the amount of the loan which qualifies under paragraph 14 or 15;

  • B = the standard rate for the time being specified in respect of that loan under paragraph 11;

  • C = the difference between 100 per cent. and the applicable percentage of income tax within the meaning of section 369(1A) of the Income and Corporation Taxes Act 1988f1 (mortgage interest payable under deduction of tax) for the year of assessment in which the payment of interest becomes due.

(2)

Where section 369 of the Income and Corporation Taxes Act 1988 does not apply to the interest on a loan or a part of a loan, the formula applied in sub-paragraph (1) shall have effect as if C had a value of 1.

Annotations

Commencement

I1

Sch. 2 para. 9 in operation at 7.10.1996, see reg. 1(1)

Footnotes

f1

1988 c. 1; section 369(1A) was inserted by section 81(3) of the Finance Act 1994 (c. 9)