Income Tax (Earnings and Pensions) Act 2003 section 191

Claim for relief to take account of event after assessment

Section 191 allows employees to claim tax relief where subsequent events change the basis on which their tax on employment-related loans was originally assessed.

• Where tax was assessed on the basis that loan interest was unpaid, but that interest is subsequently paid, the employee may claim relief to adjust the original charge.
• Where tax was assessed on the basis that a loan had been released or written off, but the employee later repays all or part of the loan, relief may be claimed.
• Where tax was assessed on the assumption that bridging loan exemptions linked to employment moves would not apply because the overall exemption limit had been reached, but that limit has not in fact been reached, the employee may claim relief.
• In all three cases, a successful claim results in the tax payable being recalculated and adjusted accordingly.