SCHEDULES

SCHEDULE 30Registered pension schemes: employer loans

Amount of unauthorised payment

Further reduction in value of charge which is not of adequate value

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1

If at any time after a loan is made—

a

the loan is secured by a charge which is not of adequate value, and

b

an event mentioned in sub-paragraph (2) occurs,

there is an unauthorised payment.

2

The events are—

a

the loan ceasing to be secured by a charge,

b

a charge being given which does not comply with conditions A or C,

c

a reduction in the value of the assets charged which does not comply with condition B, and

d

the charge ceasing to comply with condition C.

3

The amount of the unauthorised payment is—

AAE-ABEmath

where—

AAE is amount 2 (see paragraph 13) calculated after the event, and

ABE is amount 2 (see paragraph 13) calculated before the event.

4

Paragraph 1 defines conditions A, B and C.