| [s179, sch 30] |
Where loan repayments are not repaid in equal annual instalments, an unauthorised payment charge will arise on the largest amount of the difference between the required amount and the aggregate amount payable during a 12 month loan period. If the amount payable in a year exceeds the required amount, the calculation for that year is nil.
Using the example in
RPSM07103130 the required amount to
be paid by XYZ Ltd on the 5 year loan of £50,000 plus
£20,000 interest is: £14,000 per year.
The loan agreement provides for the following payments to be
made,
Year 1 £10,000 (difference £4,000)
Year 2 £18,000 (nil)
Year 3 £12,000 (difference £2,000)
Year 4 £14,000 (nil)
Year 5 £16,000 (nil).
The amount of the unauthorised payment is the highest amount
calculated of the 5 years - £4,000.
XYZ Ltd will be charged an unauthorised payment of
£4,000 @ 40%.
The scheme will be liable to a scheme sanction charge (see
RPSM07108030).
| Glossary ( RPSM20000000) |
