10(1)Where this paragraph applies in relation to a loan—U.K.
(a)paragraphs 7 and 8 do not apply in relation to the loan, and
(b)sub-paragraphs (2) to (5) apply for the purposes of calculating the amount of the loan that is outstanding at the time P is treated as taking the relevant step [F1within paragraph 1].
(2)The relevant principal amount, in relation to the loan, is an amount equal to the total of—
(a)the value in sterling, at the reference date, of the initial principal amount lent, and
(b)the value in sterling, at the reference date, of any sums that become principal under the loan, otherwise than by capitalisation of interest.
(3)The “reference date”—
(a)in relation to an amount within sub-paragraph (2)(a), means the date on which the loan is made, and
(b)in relation to a sum within sub-paragraph (2)(b), means the date on which the sum becomes principal.
(4)The repayment amount, in relation to the loan, is an amount equal to the total of—
(a)the amount of principal under the loan that has been repaid in sterling, and
(b)where payments are made, in a currency other than sterling, by way of repayment of principal under the loan, the amount equal to the sterling value of the payments.
(5)The “sterling value” of a payment is its value in sterling on the date it is made.
Textual Amendments
F1Words in Sch. 11 para. 10(1)(b) inserted (22.7.2020) by Finance Act 2020 (c. 14), Sch. 2 para. 32