SCHEDULES

Schedule 28A Change in ownership of investment company: deductions

Part IV Excess overdue interest

The rules

10

1

A payment of interest does not represent excess overdue interest except to the extent that it discharges a liability to pay overdue interest.

2

For the purposes of this Part of this Schedule, a payment of interest on a debt shall be treated as discharging any liability to pay overdue interest before it is treated to any extent as discharging a liability to pay interest which is not overdue interest.

11

Where amount C does not exceed amount P, no payment of interest represents excess overdue interest.

12

1

Where amount C exceeds amount P—

a

find the amount by which amount C exceeds amount P (amount X);

b

take all the payments and parts of payments which discharge any liability to pay overdue interest;

c

treat those payments and parts of payments as cancelling out amount X before any other part of amount C.

2

A payment of interest represents excess overdue interest to the extent that, in accordance with sub-paragraph (1) above, it is treated as cancelling out amount X.