Sometimes a loan or part of a loan is released or written off. This means the borrower does not have to repay the lender. It is also sometimes referred to as a loan being waived.
If the loan was made by the employer and the release or writing
off can only be ascribed to the fact that the borrower is an
employee, the amount released or written off will be earnings
chargeable under Section 62 ITEPA 2003. This is so whether or not
the employee is in an excluded employment (see
EIM01490).
Where a charge arises under Section 62 on the full amount
released or written off the instructions at
EIM21741 onwards do not apply.
Where the full amount released or written off is not
chargeable under Section 62 look at
EIM21741 onwards.
