6(1)In paragraphs 7 to 10 “the loan currency”, in relation to a loan, means the currency in which the initial principal amount of the loan is denominated (whether or not that amount is paid in that currency).U.K.
(2)For the purposes of paragraphs 7 to 10, the value of an amount in a particular currency is to be determined by reference to an appropriate spot rate of exchange.
7(1)This paragraph applies in relation to a loan where the loan currency is a currency other than sterling.U.K.
(2)But this paragraph does not apply if paragraph 10 applies in relation to the loan.
(3)The amount of the loan that is outstanding, at the time P is treated as taking the relevant step [F1within paragraph 1], is to be calculated in sterling as follows—
Step 1 Calculate, in the loan currency, the amount that is outstanding at that time.
Step 2 Take the value in sterling, at that time, of that amount.
(4)See paragraph 8 for provision about repayments made in a currency other than the loan currency.
Textual Amendments
F1Words in Sch. 11 para. 7(3) inserted (22.7.2020) by Finance Act 2020 (c. 14), Sch. 2 para. 31