EIM26158 - The benefits code: beneficial loans: exemption for commercial loans
Section 176(1), (2) and (3) ITEPA 2003
There is no chargeable benefit on a loan made on ordinary commercial terms to an employee if:
- the loan was made by a person in the ordinary course of a business carried on by that person that includes the lending of money and
- at the time when the employee loan was made the lender was making comparable loans (see EIM26159) available to all potential borrowers and
- of the comparable loans made by the lender at or about the time (see EIM26162) the employee loan was made, a substantial proportion (see EIM26160) was made to members of the public at large with whom the lender was trading at arms length (see EIM26164) and
- the same terms apply to all the comparable loans (including the employee loan) and
- where the terms of the comparable loans (including the employee loan) are different from the original terms, the new terms were imposed in the ordinary course of the lender바카라 사이트™s business.
Note that the exemption is due only if all these conditions are satisfied.
The exemption also applies in a similar way to credit advanced by an employer in the ordinary course of a business that includes the supplying of goods or services on credit.
See EIM26170 for the exemption that applies for loans varied onto commercial terms.