PART XIXU.K.BAD DEBT RELIEF (THE NEW SCHEME)

Modifications etc. (not altering text)

C1Pt. 19 modified (except reg. 171) (temp.) (27.7.1999 until 1.12.1999, see S.I. 1999/3029, reg. 5) by Finance Act 1999 (c. 16), s. 15(4)(5)

C2Pt. XIX modified (10.6.2021 for specified purposes, 1.7.2021 in so far as not already in force) by 1994 c. 23, Sch. 9ZF para. 16(4) (as inserted by Finance Act 2021 (c. 26), s. 95(6)(a), Sch. 18 para. 6; S.I. 2021/770, regs. 3, 4 (with regs. 5-7))

[F1Attribution of payments received under certain credit agreementsU.K.

[F2170A—(1) This regulation applies where—

(a)the claimant made a supply of goods and, in connection with that supply, a supply of credit;

(b)those supplies were made under a hire purchase, conditional sale or credit sale agreement; and

(c)a payment is received in relation to those supplies (other than a payment of an amount upon which interest is not charged).

(2) Where the supply of goods was made before 1st September 2006 the payment shall be attributed in accordance with the rule set out in paragraph (5).

(3) Where the supply of goods was made on or after 1st September 2006 and before 1st September 2007 the payment may be attributed in accordance with the rule set out in paragraph (5) or (6).

(4) Where the supply of goods was made on or after 1st September 2007 the payment shall be attributed in accordance with the rule set out in paragraph (6).

(5) Where this paragraph applies, the payment shall be attributed —

(a)as to the amount obtained by multiplying it by the fraction , to the supply of credit; and

(b)as to the balance, to the supply of goods,

  • where—

  • A is the total of the interest on the credit provided under the agreement under which the supplies are made (determined as at the date of the making of the agreement); and

  • B is the total amount payable under the agreement, less any amount upon which interest is not charged.

(6) Where this paragraph applies, the payment shall be attributed —

(a)in respect of payments made on or before termination of the agreement,

(i)as to the amount obtained by multiplying it by the fraction , to the supply of credit; and

(ii)as to the balance, to the supply of goods,

where—

  • A is the total of the interest on the credit provided under the agreement, less any rebate of interest granted, less any interest attributable to any unpaid instalments prior to the termination; and

  • B is the total amount payable under the agreement being the total of A plus the total for the goods.

  • “Total for the goods” means the amount due for the goods under the agreement, less any reduction as a consequence of termination, less any amount upon which interest is not charged, less any part of the total due for the goods which is unpaid at the time of termination.

(b)in respect of payments made after termination of the agreement, between the supply of goods and the supply of credit according to the proportion of the balances due at the time the payment is made.

(7) Where an agreement provides for a variation of the rate of interest after the date of the making of the agreement then, for the purposes of the calculation in paragraph (5), it shall be assumed that the rate is not varied.]]

Textual Amendments