Finance Act 2004

184Unauthorised borrowing: other arrangementsU.K.

(1)A registered pension scheme is not authorised to borrow an amount in respect of any [F1relevant arrangement] unless the scheme borrowing condition is met.

[F2(1A)In this section “relevant arrangement” means an arrangement that—

(a)is not a money purchase arrangement, or

(b)is a collective money purchase arrangement.]

(2)The scheme borrowing condition is met if—

where—

APB is the aggregate of the amounts previously borrowed by the pension scheme in respect of [F3relevant arrangements] (excluding any amounts which have been repaid),

PB is the amount proposed to be borrowed by the pension scheme, and

AARA is the aggregate amount of the relevant sums and assets.

(3)The aggregate amount of the relevant sums and assets is the aggregate of—

(a)the amount of the sums held for the purposes of such of the arrangements under the pension scheme as are [F4relevant arrangements], and

(b)the market value of the assets held for the purposes of such of the arrangements under the pension scheme as are [F5relevant arrangements].

Textual Amendments

Modifications etc. (not altering text)

Commencement Information

I1Ss. 160-274, 281, Schs. 30-35 in force at 6.4.2006 but any power to make an order or regulations under those provisions may be exercised at any time after Royal Assent, see s. 284