EIM03123 - Removal or transfer costs: expenses
and benefits to which Section 271 ITEPA applies: bridging loans:
loans provided by the employer: background
Section 288 ITEPA 2003
Where:
- the employer makes a cheap or
interest-free loan (see
EIM26100) to the employee or to a member
of the employee's family or household and
- that person disposes of an interest in the
old home and acquires an interest in the new home and
- the reason, or one of the reasons, why
that person takes out the loan is to bridge the gap between the
date when the interest in the new property is acquired and the date
when the sale proceeds of the old property are available.
the normal charge under Part 3 Chapter 7 ITEPA 2003 may be
eligible for exemption or reduction if the other relocation
expenses and benefits qualifying for exemption do not exceed the
£8,000 limit.
For the procedure to follow see
EIM03124.
