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Home / Simons-Taxes /Personal and employment tax /Part E4 Employment income /Division E4.6 The benefits code /Benefits code—employment-related loans / E4.645 Cheap loans—replacement loans
Commentary

E4.645 Cheap loans—replacement loans

Personal and employment tax

Where an employment-related loan is replaced (directly or indirectly) by a further employment-related loan, they are treated as the same loan for the purposes of calculating the cash equivalent on the normal, averaging basis1. This also applies if the original employment-related loan is replaced by a non-employment-related loan which is subsequently replaced by a further employment-related loan in the same tax year or within 40 days thereafter2. A 'further employment-related loan' is an employment-related loan obtained by virtue of the same employment as the first or another employment with the same employer

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