SCHEDULES

SCHEDULE 22Prevention of exploitation of Schedule 20 to Finance Act 1994

Part IVInterpretation

Relevant arrangements for purposes of paragraph 9

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1

Any arrangements under which—

a

interest arises at irregular intervals during the years 1994-95 to 1997-98, or

b

there are artificial variations in the rate of interest applicable during those years,

are relevant arrangements for the purposes of paragraph 9 above unless the obtaining of a tax advantage is not the main benefit that could reasonably be expected to arise from the making of the arrangements.

2

Any variations in the rate of interest applicable during the years 1994-95 to 1997-98 are artificial variations for the purposes of this paragraph unless they are based on variations in a variable rate of interest the values of which from time to time are regularly published.