Meaning of `loan'
The meaning of `loan' covers more than lending money. It includes any form of credit. It follows that any kind of advance made by reason of employment is a loan. For example, any amount shown in the employer's books or records as owed by an employee is a loan.
Meaning of 'making a loan'
A loan is made to an employee by an employer if the employer:
- arranges the loan
- guarantees a loan
- in any way facilitates a loan
- takes over a loan from another person.
For example, if a company pays money into a trust fund, and the trustees then make loans to employees of the company, the company has facilitated the making of loans to the employees.
Advances of expenses
Advance payments made to an employee by an employer to cover any necessary expenses the employee will incur in performing his or her duties are strictly beneficial loans.
In practice they are not treated as such when certain conditions are satisfied. The conditions are listed at EIM26155.
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