The Income Tax (Interest Relief) Regulations 1982

Variation of repayment terms of certain loans

8.—(1) Expressions used in this Regulation have the same meaning as in section 28.

(2) Subject to the provisions of this Regulation the amount of each combined payment and the date on which it becomes due from a borrower, to whom a specified lender has given a notice under section 28(2)(a) to vary the terms of repayment of the loan, shall be notified to the borrower by the lender.

(3) The notice under section 28(2)(a) shall be in a form prescribed or authorised by the Board but shall not have effect unless—

(a) it contains a statement of the borrower's right under section 28(2)(b) to give a counter notice; and

(b) there is a period of not less than 30 days between the giving of the notice and the due date for the first of the combined payments to which the notice relates.

(4) A borrower shall be entitled to give a counter notice under section 28(2)(b) not later than 3 months after the due date for the first combined payment to which paragraph (2) above refers.

(5) On receipt of the borrower's counter notice under section 28(2)(b) the lender shall give notice to the borrower of—

(a) the amount of the combined payments which will be due from him after taking account of the requirements of section 28(4);

(b) the due date for the first such combined payment which shall be—

(i) where the borrower gives a counter notice under section 28(2)(b) within 30 days of the lender's notice under section 28(2)(a), the due date for the first combined payment to which paragraph (2) above refers; or

(ii) in any other case, a date not later than what, apart from the borrower's counter notice, would have been the date of the second of his combined payments falling due after the date of that counter notice;

(c) an estimate of the total period which, assuming there is no change in the amount of the borrower's combined payments, will be required to satisfy the principal and the interest on the loan by means of those payments; and

(d) a statement of the borrower's right under section 28(4) to make additional repayments of capital.