SolvedEIM26132 | The benefits code: beneficial loans: exemptions from charge: general
From HM Revenue & Customs · Employment Income Manual
No charge is made on beneficial loans obtained by reason of a person’s employment in the circumstances summarised in the following table. The relevant instructions should always be consulted.
| Circumstances | Relevant instructions |
|---|---|
| The loan is a qualifying loan (see EIM26136) on which the whole of any interest qualifies for relief | EIM26135 |
| The aggregate balance outstanding on all beneficial loans does not exceed £10,000 at any time in the year (£5,000 for 2013 to 2014 and earlier tax years) | EIM26140 |
| The aggregate balance on all non-qualifying loans (see EIM26137) does not exceed £10,000 at any time in the year (£5,000 for 2013 to 2014 and earlier tax years) | EIM26145 |
| The employee shows that he or she derived no benefit from a loan made to his or her relative | EIM26150 |
| The loan is for fixed period at a fixed rate of interest and the loan was first made ‘before 6 April 1978 at a genuine commercial rate’, or ‘on or after 6 April 1978 at an interest rate equal to, or more than, the appropriate official rate(s) for the year the loan was made’ | EIM26152 |
| Advances for necessary expenses made by an employer to an employee (subject to certain limits) | EIM26155 |
| A loan or credit on terms that are available to and substantially taken up by the public at large, made by a person whose business includes the lending of money or the giving of credit | EIM26158 |