Income Tax (Earnings and Pensions) Act 2003 section 173

Loans to which this Chapter applies

Section 173 defines which loans fall within the employment-related loans rules and establishes that such loans are treated as taxable benefits.

• The chapter applies to any loan that is an employment-related loan, and such a loan is automatically treated as a benefit regardless of whether the loan terms represent a fair bargain
• Where the loan is a taxable cheap loan (one at a low or zero interest rate), sections 175 to 183 set out how to calculate the amount treated as taxable earnings
• The definition of "loan" is very broad and includes any form of credit, and "making a loan" extends to arranging, guaranteeing or in any way facilitating a loan
• Exemptions and reliefs are available under sections 288 and 289 for certain bridging loans connected with an employee's relocation for work purposes