HMRC recognises that sometimes loans will be made to employers
and the employer will sometimes get into financial difficulties
during the term of the loan. For instance where an employer is
having genuine difficulties making repayments and there is an
amount of capital or interest outstanding at the end of the loan
period, the loan period can be extended and the loan repayment date
may be postponed or “rolled over” for a period up to a
further 5 years starting from the standard repayment date.
A loan may only be rolled over once. Under no circumstances
can a loan to be rolled over more than once.
The rollover loan will not be treated as a new loan and
therefore any existing security may continue, even if the security
is less than the face value of the loan.
Any increase to the original loan will be treated as a new
loan.
The 50% limit will only be re-tested in the event of a new
loan being taken out.
The rules for rollovers of loans taken out before 6 April
2006 are covered at
RPSM07103200.
| Glossary ( RPSM20000000) |
