Part 3Employment income: earnings and benefits etc. treated as earnings

Chapter 7Taxable benefits: loans

Introduction

173Loans to which this Chapter applies

(1)

This Chapter applies to a loan if it is an employment-related loan.

F1(1A)

Where this Chapter applies to a loan—

(a)

the loan is a benefit for the purposes of this Chapter (and accordingly it is immaterial whether the terms of the loan constitute a fair bargain), and

(b)

sections 175 to 183 F2make provision about amounts which, in the case of a taxable cheap loan, are to be treated as earnings in certain circumstances .

(2)

In this Chapter—

(a)

loan” includes any form of credit, and

(b)

references to making a loan (and related expressions) include arranging, guaranteeing or in any way facilitating a loan.

(3)

Sections 288 and 289 make provision for exemption and relief for certain bridging loans connected with employment moves.