SCHEDULES
C1 SCHEDULE 12Taking control of goods
Part 2The procedure
Application of proceeds
50
1
Proceeds from the exercise of an enforcement power must be used to pay the amount outstanding.
2
Proceeds are any of these—
a
proceeds of sale or disposal of controlled goods;
b
money taken in exercise of the power, if paragraph 37(1) does not apply to it.
I13
The amount outstanding is the sum of these—
a
the amount of the debt which remains unpaid (or an amount that the creditor agrees to accept in full satisfaction of the debt);
b
any amounts recoverable out of proceeds in accordance with regulations under paragraph 62 (costs).
I14
If the proceeds are less than the amount outstanding, which amounts in sub-paragraph (3)(a) and (b) must be paid, and how much of any amount, is to be determined in accordance with regulations.
5
If the proceeds are more than the amount outstanding, the surplus must be paid to the debtor.
6
If there is a co-owner of any of the goods, the enforcement agent must—
a
first pay the co-owner a share of the proceeds of those goods proportionate to his interest;
b
then deal with the rest of the proceeds under sub-paragraphs (1) to (5).
I17
Regulations may make provision for resolving disputes about what share is due under sub-paragraph (6)(a).
Sch. 12 applied (prosp.) by Finance Act 2008 (c. 9), ss. 127(2), 129(4)