EIM03124 - Removal or transfer costs: expenses
and benefits to which Section 271 ITEPA 2003 applies: bridging
loans: loans provided by the employer: procedure
Section 284 ITEPA 2003
- Consider whether other qualifying removal expenses and benefits
add up to £8,000 or more. If they do, no relief will be due.
Assess the benefit of the loan following the normal rules. If they
do not, go to step 2.
- If the time limit (see
EIM03104) has not expired and it is
likely that there will be further qualifying removal expenses and
benefits, assess the benefit of the loan under the normal rules at
EIM26101 onwards. Reconsider the
position when the time limit has expired. Otherwise go to step
3.
- If the other qualifying removal expenses and benefits total
less than £8,000, calculate using the formula:
where
- A is the difference between the total of all other
qualifying expenses and benefits and £8,000
- B is the maximum amount of the loan outstanding
between the date the loan is made and the date when the time limit
expires and
- C is the official rate of interest (see
EIM26104) in force at the time when the
loan is actually made.
Round up the result to the nearest whole number. The answer is
treated as a number of days.
- Take the date on which the loan was made and add to it the
number of days calculated at step 3.
- Work out the charge under Part 3 Chapter 7 ITEPA 2003 on the
basis that the loan was made on the day calculated at step 4 rather
than on the actual day when it was made (see
EIM26101 onwards).
For further guidance see the example at
EIM03125.
