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.