A loan that is made to or in respect of a sponsoring employer is an authorised employer loan if:

(1)the amount of the loan is less than one half of the value of the funds held by the pension scheme immediately before the loan is made;

(2)the loan must be secured by a charge which is of adequate value – this requirement is further expanded by Sch. 30, para.1 which provides that the market value of the assets subject to the charge must at least equal the amount owing and that it must take priority over any other charge – see also Eden Consulting Services (Richmond) Ltd [2017] TC 06038 where a charge that had not been registered was found not to be of adequate value; and

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