Paragraph 9

Subject to paragraph 6(3) above, for any financial year, the amount referred to in paragraph 6(1)(b) above in respect of notional interest on a credit arrangement is that determined by the formula—

where, subject to sub-paragraphs (2) and (3) below,—

• “a” is the cost of that arrangement on 1st April in that financial year; and

• “b” is the percentage rate of discount prescribed in article G11(2) of this Order (initial and subsequent cost of credit arrangements) for the financial year in which the arrangement came into being.

In the case of a credit arrangement which has been varied as mentioned in article G13(3) of this Order (variation of credit arrangements), “b” in the formula in sub-paragraph (1) above is the percentage rate of discount prescribed under article G11(2) of this Order (initial and subsequent cost of credit arrangements) for the financil year in which the arrangement was so varied or, as the case may be, last varied.

In the case of a credit arrangement falling within article G11(3) of this Order (initial and subsequent cost of credit arrangements) where the Secretary of State by regulations made under Part IV of Schedule 3 to the 1989 Act provides that “b” in the formula under sub-paragraph (1) of paragraph 19 of the Schedule above shall be such figure as may be specified in, or determined under, the regulations then “b” in the formula under sub-paragraph (1) above should also be the same figure as may be specified in, or determined under, those regulations.