Finance Act 2004

Amount B

15 (1) Amount B arises if paragraph (b) of section 179(2) (loan repayment date to be within five years unless postponed) is not complied with.

(2) Amount B is—

• where—

  • DLRP is the number of days in the period which begins with the date on which the loan is made and ends with the loan repayment date,

  • DFY is the number of days in the period which begins with the date on which the loan is made and ends five years after that date, and

  • AO is the amount owing (including interest) at the relevant time.

(3) But if the amount produced by the fraction in sub-paragraph (2) is greater than 1, amount B is the amount owing (including interest) at the relevant time.

(4) If the loan repayment date has been postponed under section 179(3), sub-paragraph (2) applies as if references to the date on which the loan is made were to the standard loan repayment date on which the loan repayment date was postponed.