SCHEDULE 5DIRECT PAYMENT TO LENDER OF DEDUCTIONS IN RESPECT OF INTEREST ON SECURED LOANS
Election not to be regarded as a qualifying lender10
1
A body or person who would otherwise be within the definition of “qualifying lender” in paragraph 1(1)—
a
may elect not to be regarded as such by giving notice to the Secretary of State in writing; and
b
may revoke any such notice by giving a further notice in writing.
2
In respect of any financial year, a notice under sub-paragraph (1) which is given not later than the 1st February before the start of the financial year takes effect on 1st April following the giving of the notice.
3
Where a body or person becomes a qualifying lender in the course of a financial year—
a
any notice of an election by the body or person under sub-paragraph (1)(a) must be given within 6 weeks (“the initial period”) of the date of their becoming a qualifying lender; and
b
no direct payments may be made under paragraph 3 to the body or person before the expiry of the initial period.
4
But sub-paragraph (3)(b) does not apply in any case where—
a
the body or person gives the Secretary of State notice in writing that that provision should not apply; and
b
that notice is given before the start of the initial period or before that period expires.
5
In relation to a notice under sub-paragraph (1)—
a
where the notice is given by an electronic communication, it must be given in accordance with the provisions set out in Schedule 2 (electronic communications);
b
where the notice is sent by post, it is to be treated as having been given on the day the notice was received.