Part 3

Employment income: earnings and benefits etc. treated as earnings
Chapter 7

Taxable benefits: loans

General supplementary provisions

Claim for relief to take account of event after assessment
191
1
A claim may be made for relief in the following cases.
2
The first case is where—
a
the tax payable by an employee for a tax year in respect of a loan has been decided on the basis that, for the purposes of section 175 (benefit of taxable cheap loan treated as earnings), the whole or part of the interest payable on the loan for that year was not paid, and
b
it is subsequently paid.
3
The second case is where—
a
the tax payable by an employee for a tax year in respect of a loan has been decided on that basis that, for the purposes of section 188 (loan released or written off: amount treated as earnings), the loan has been released or written off in that year, and
b
the whole or part of the loan is subsequently repaid.
4
The third case is where—
a
the tax payable by an employee for a tax year in respect of a loan has been decided on the basis that—
i
section 288 (limited exemption of certain bridging loans connected with employment moves), and
ii
section 289 (relief for certain bridging loans not qualifying for exemption under section 288),
will not apply because the condition in section 288(1)(b) (which requires that the limit on the exemption under section 287(1) has not been reached) will not be met, and
b
that condition is met.
5
Where a claim is made under this section the tax payable is to be adjusted accordingly.